US Dollar Price Outlook Talking Points:
- The US Dollar[1] has bounced this week after the Powell-fueled sell-off from last week.
- Markets have high expectations for dovish policy out of the Fed in the remainder of this year, with a 79.1% chance of three rate cuts by the end of the year. But the Fed has so far appeared reticent to signal more than one cut; begging the question as to whether the bank will deliver on market demands for softer policy after the seven hikes pushed through 2017 and 2018.
- DailyFX Forecasts are published on a variety of markets such as Gold[2], the US Dollar[3] or the Euro[4] and are available from the DailyFX Trading Guides page[5]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[6]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[7].
US Dollar Recovers From Powell-Fueled Sell-Off
The US Dollar has had a strong start to the week on the heels of the bearish move that showed-up last week following Jerome Powell’s Humphrey Hawkins testimony. While Chair Powell effectively took on a dovish tone during his trip to Congress, the big question is just how dovish might the Fed get? Markets are pricing in a 100% chance of a cut in July, and rate expectations are looking for more in the remainder of this year, with a whopping 79.1% chance of three cuts by the end of the year.
