US Dollar Holds its Ground After a Short Pullback
After a brief dip, the U.S. dollar stuck close to its current level, giving up roughly half of the rally sparked by the early‑week news of Donald Trump’s election triumph. It’s a classic case of the market taking a breather before the real action begins.
Fed’s 25‑Basis‑Point Cut is the Talk of the Town
- Rate cut news is circulating—Fed’s 25‑bps reduction has everyone scrutinizing the next steps.
- Jerome Powell made it clear: the Fed’s approach remains data‑driven. Politics, including Trump’s re‑election, won’t steer monetary policy.
What’s Next? Michigan Consumer Sentiment
Time will shift to the Michigan Consumer Sentiment release. If folks feel bold and optimistic, inflation worries could spike, pulling the Fed toward a stricter stance—a move that could support the greenback.
Trade Policies & the Inflation Tightrope
Trump’s proposed trade changes are an added layer of pressure on prices. Investors are now playing it a bit more cautiously when it comes to the 2025 rate‑cut expectations.
