Dollar Falls as Prospects of Two Fed Rate Cuts This Year Reemerge
| Action Insight Weekly Report 4-27-24 |
| Dollar Falls as Prospects of Two Fed Rate Cuts This Year Reemerge |
Dollar concluded last week with significant losses, influenced by a set of factors that realigned market expectations and investor sentiment. A pivotal moment came with Fed Chair Jerome Powell's much less-hawkish-than-feared remarks at the FOMC press conference, coupled with disappointing US employment figures. These developments led markets back to anticipate two Fed rate cuts by year-end. This recalibration in interest rate expectations spurred a rally in US stocks and a marked reduction in Treasury yields, which in turn exerted additional downward pressure on the Dollar. Compounding Dollar's decline was Japan's purported intervention in the currency markets. Substantial buying in Yen, after it breached a significant psychological level against Dollar, helped boosted Yen to the top for the week. This intervention appeared timed strategically around key market shifts, echoing Japan's readiness to engage in currency markets any time of the day... |
EUR/USD Weekly Outlook EUR/USD's rise from 1.0601 resumed last week and the strong break of 55 D EMA argues that fall from 1.1138 might have completed. Initial bias stays on the upside this week. Firm break of 100% projection of 1.0601 to 1.0752 from 1.0648 at 1.0799 will pave the way to 161.8% projection at 1.0892. For now, risk will stay on the upside as long as 1.0648 support holds, in case of retreat. | |
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