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Change in USD Sentiment


Change in USD Sentiment

The USD has been staging a rebound, after two FOMC speakers calmed the markets regarding rate cuts.

Commentary from Fed’s Bullard and the separately Fed’s Chair Powell, shifted USD sentiment.


Bullard:


• “I think 50 basis points would be overdone,” (NOT DOVISH – As markets are expecting two cuts)


Powell:


• Fed To Closely Monitor information And Act As Appropriate

• Want To Wait And See Because Changes Have Been Rapid

• Important To Not Overreact In The Short Term

Markets have been pricing in two cuts from the FOMC, with the first expected in July. The above commentary from both central bankers does not really indicate reading in between the lines that a cut is going to happen next month.



It appears the central bank stand ready to act, but will not necessarily doing so just yet, they will continue to monitor data.



The USD has been pushing to recovery the beating taken last week, after the market had been heavily pricing in rate cuts from the central bank.


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