US Dollar Weekly Forecast: Investors shift their focus from jobs to CPI
The week that was Joy cant last forever, can it? The US Dollar (USD) rapidly faded its prior gains and resumed its marked downside this week, with the US Dollar Index (DXY) coming close to its psychological 100.00 barrier, only to see that dream turn to ashes as market chatter reignited speculation that the Bank of Japan (BoJ) might hike its policy rate at its next meeting. But nobody, or nearly no one, said anything about a potential FX intervention by the MoF-BoJ duo. Not even fresh tensions in the back-and-forth scenario in the Middle East were able to give the buck any fresh legs. And then came Christopher Waller and John Williams, begging markets for patience while favouring the statu quo being left unchanged for now. Well, at the Federal Reserves (Fed) next meeting. Furthermore, the severe correction in the US Dollar has practically ignored the weekly developments from the US bond market, where US Treasury yields remained in the upper end of their recent range despite their mixed performance. It is not the labour market, stupid! The sharp rebound of the US Dollar Index soon after Nonfarm Payrolls (+162K) was just that: a robust, albeit temporary, bounce. It was clearly indicative of how surprisedmarket participants were









