Donald Trump is onto something: the strong Dollar is seeing U.S. consumption increasingly turn to foreign providers for sustenance. But the politicisation of the Dollar could limit its upside says one analyst.
Dollar exchange rates are softer right across the board amidst a lack of fresh upside triggers which leaves crowded long positions exposed. However, it is too soon to say a fundamental turnaround is underway.
The U.S. Dollar surged after U.S. inflation was stronger than was expected in March, lowering the odds of a June rate cut at the Federal Reserve to less than 50%.
The Dollar fell across the board after the ISM PMI survey of the services industry showed a slowing in momentum that raised hopes the Federal Reserve could cut interest rates for the first time in June.
Another surprisingly robust U.S. inflation release has aided Dollar exchange rates higher and points to "brewing bullish momentum" according to one analyst.
RBC Capital Markets has adjusted its Federal Reserve (Fed) call, now forecasting 75 basis points (bp) of rate cuts for 2024, delivered at a quarterly pace.
The Dollar firmed in the wake of an above-consensus U.S. inflation report that put the brakes on rising bets that the Federal Reserve could cut interest rates in June.
The Dollar was sold after data showed wages in the U.S. cooled sharply in February, raising the prospect of a mid-year interest rate cut at the Federal Reserve.
Dollar exchange rates were broadly weaker on the day a U.S. job survey revealed fewer people are quitting jobs each month to pursue higher-paid prospects.
The Dollar was broadly softer after a highly-anticipated business survey missed expectations and hinted at a potential slowdown in America's hot growth rate.
The Pound to Dollar exchange rate was set to end the week on a sour note following the release of a fresh U.S. inflation reading that pointed to persistent price pressures.
U.S. inflation came in well above expectations in January, but economists say this is a blip as leading indicators all point to ongoing declines in inflation over the coming months.