USD Index Takes a Tiny Sip: Still Near Multi‑Year Lows
On Wednesday, the U.S. dollar index was hanging out near its lowest point in years after a couple of sessions of decline. The good news? Investor mood shifted after the ceasefire between Israel and Iran. But the story doesn’t end there—politics and Federal Reserve moves are still holding the runway.
What’s the Business Behind the Truce?
While the truce is holding, the hints of damage to Iran’s nuclear facilities add a dash of uncertainty to the geopolitical mix. The reality is that safety‑haver traders didn’t paint the greenback as a sanctuary as hard as they used to. In short, the dollar is feeling a bit less “safe” orphan than before.
Fed Chair’s Whisper: “We’ll Keep It Steady”
Federal Reserve Chair Jerome Powell was all business when he sat down with Congress. He drilled home the Fed’s cautious stance, suggesting that rates will stay on their current runway until the effect of tariffs on inflation becomes crystal clear.
Even with Powell’s steady voice, the market is still whispering about two more rate cuts later this year. Thanks to that, U.S. Treasury yields flirt with lower levels— the 10‑year note hovering around 4.28% ahead of Powell’s Senate appearance.
Watch Out for These Indicators:
- Durable Goods Orders – a snapshot of the health of manufacturing.
- GDP (Gross Domestic Product) – keeps the economy’s pulse under the spotlight.
- Core PCE (Personal Consumption Expenditures) – a key measure of inflation in action.
These data points could give the Fed an extra nudge as they decide the next move, and they’ll also influence the dollar’s trajectory. No guessing games—just watch the numbers roll in!
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