USD Shakes Off the Roller‑Coaster, Still Short of Its Peak
Yesterday’s dollar action was a wild ride—flat‑lined, wiggling a bit, and still huddled below its early‑month high. With Fed chatter on the table, the path ahead feels more like a hamster wheel than a straight road, and each turn of policy expectations smells a bit different.
What’s Brewing Behind the Scenes?
- Fed’s “Chef’s Special” Menu: Jerome Powell and his crew faced the media last week, dropping hints that a slight twist or major overhaul could come next. Those whispers have left traders scratching their heads.
- Data‑Driven Storm: Inflation numbers, job‑market snapshots, and the looming threat of a government shutdown are all on the horizon, each ready to stir the market’s pot.
Euro: The Quiet Giant That Might Lose a Hairline
While the euro has been hanging out in a relatively calm bubble, it’s showing a slight slide against the dollar—like a teen’s mood in a new school. Investors are keeping a gun‑point eye on next week’s Eurozone CPI, especially after ECB President Lagarde voiced doubts over inflation trends. Even though Germany’s inflation has taken a dip, a softer monetary stance might kick the euro’s performance down on the medium shelf.
Yen’s New Low and the Bank of Japan’s Potential “Plan B”
The Japanese yen hit a yearly low, sparking speculation that the Bank of Japan might loosen its hands to steady things. That move could deepen the yen’s wobble, given that interest‑rate gaps are still wide and the ultra‑loose policy is dusty.
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