US DOLLARS DIRECT
- US dollar For the main currency pairs heading towards the end of the month, this is quite confusing
- DXY index has changed little at the meeting as recent sales pressures begin to ease
- The main inflation data of the PCE was largely ignored by the Fed and the markets focused on jobs and risks
The US dollar is trying to strengthen slightly, as the broader DXY index accelerates by 0.12%. This will be followed by a sharp decline at the beginning of the week, which will leave the US dollar about -1% lower than last week’s closing on Friday. The key figures for the PCE, the Federal Reserve’s preferred inflation indicator, have just been released and may contribute to the strength of the US dollar.
This means that core PCE inflation will continue to rise and remain at the level last seen for almost three decades. This will undoubtedly keep the pressure on Fed officials to set a timetable for reducing asset purchases and governing arrogant monetary policy. Honestly, the latest examples of the PCE core exceeded market leads below the consensus forecast. DailyFX economic calendar details with annual baseline PCE were 3.5%, expected 3.7%.
DXY INDEX – US DOLLAR PRICE CARD: DAILY FRAME (February 17 to July 30, 2021)
In the same way, in the light updated guide from FOMC President Powell this week, markets may pay more attention to other non-inflationary factors that are likely to affect Fed policy.After all, recent inflationary pressures are not only expected and largely explained by base effects and supply chain disruptions, but also the central bank’s inflation tolerance exceeds inflation to exceed the 2% target after a strategic shift to average inflation.AIT) last year.
This highlights the extent to which further progress is needed to meet the Fed’s maximum employment rate, which overshadows the central bank’s price stability mandate. As such, labor market data – such as unemployment claims, non-farm wages, unemployment rates – may affect the direction of the US dollar more than inflation.
Longing NFP -d next Friday, 06. Market sentiment and risk appetite may also affect demand for the US dollar, given its position. secure currency. This may justify keeping tabs close to it S&P 500-The derived VIX index as a higher rise in the alarm meter can be seen following the US dollar.
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