As you know, last week the dollar came off new 2025 lows after the Fed decided to cut rates by 25 basis points, but Powell sounded a bit concerned about inflation risks. That’s why the dollar has seen an interesting recovery in the last few sessions, while stocks slowed down their previous bullish momentum. I’m wondering if we could see more dollar recovery after a near-term retracement, which could even show up during some of the Fed policymakers’ speeches due today and tomorrow.
However, the key data for the dollar and yields, and potential new decisions later this year will be the US Core PCE report, the Fed’s preferred inflation gauge, which will be released on Friday.
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