DXY | +1.60% Forecast for Intraweek Upside | UPDATE: feds-b-book

Almost perfection with t forecasting given over the last few weeks, as is inline with the exact trading strategy and style we represent for free on a daily basis! Now, what's the deal with the USD?

Comment:

Strong demand generally allowed firms to raise prices with little pushback, the report concluded, though contractual obligations prevented some firms from increasing prices. Fed Chairman Jerome Powell has struck a hawkish tone in two days of congressional testimony, possibly after reading a draft of this Beige Book report. Powell hinted that the Fed's asset purchases could end a few months earlier than planned. "The Fed is clearly shifting its policy focus to a focus on inflation," said Tim Duy, chief US economist at SGH Macro Advisors. Stocks were slightly higher on Tuesday, with the DJIA up 0.08 percent and the SPX up 0.40 percent, as investors tried to figure out what the Fed's pivot meant for asset prices.

Comment:

While the economy grew at a moderate pace in November, businesses raised prices at a rapid clip across a broad swath of the economy, according to the Fed's latest Beige Book survey, which was released on Wednesday. According to the survey, "Prices rose at a moderate to robust rate, with price increases widespread across the economy."