Investors are solidifying their expectations that the Federal Reserve won’t tweak rates to the upside any time soon.
The dollar hit a 2-and-a-half month low early on Tuesday as correction mode swept across the forex board. Yen powered the most.
The dollar index fell off a cliff following the latest CPI report. The drop in price growth fueled hopes the Fed won’t touch rates any time soon.
The US dollar is marching forward to 106.00, up roughly 1% this week. The lack of major headlines is expected to keep a lid on volatility.
For the second time in a row, the Fed decided to hold rates unchanged but hinted it’s not done raising to stamp out sticky inflation.
The greenback pared gains against major rivals while the 10-year yield topped 5% but then dived near the 4.8% mark.
In an otherwise lightweight economic calendar, the dollar is waiting patiently to hear the Fed chair’s remarks on interest rates.
Inflation data is coming up today and forex traders are expecting a fairly flat percentage figure. Dollar is retreating across the board.
The monster rally in the US dollar has been backpedaling from its weekly highs. Jobs data today is expected to inject fresh volatility.
Fed chief Jerome Powell is set to speak later today. Friday brings the latest jobs report. Here’s what’s happening to the dollar.
“Is it happening, finally?” – dollar bears, probably, as the US dollar flashed its first signs of weakness in months.
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