State of the market
After the publication of positive inflation data in the US, the US dollar restrained growth resumed against most competitors. The reason for American dollar’s restraint was the recent comments by the US Federal Reserve Chairman Powell and his upcoming speech. In the semi-annual monetary policy report to Congress, Powell echoed concerns about the possibility of slowing inflation. Powell also noted the dependence of monetary policy on key indicators of inflation and employment. Also noted the continuing risks of slowing the global economy. And the overall tone remained soft and indicating the possibility of stimulating the US economy.
As a result, the US dollar remains limited to the expectation of lower rates of the US Fed, despite the positive inflation data. Therefore, the US dollar index is likely to be limited in growth by the resistance level of 97.00-10. As a result, it can resume the sale of the American dollar.
Fig. The US dollar index chart. The current price is 97.00 (10-year US government bonds yield is the blue line)
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Andre Green
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