US Dollar Posts New Gains as Traders Eye Inflation and Fed’s Rate Decision — TradingView News

It’s about to get heated in financial markets this week with a bunch of key data reports. Brace for high volatility.

• The US dollar index DXY marched higher to kickstart the new trading week. The index, tracking the American currency’s valuation against six rival currencies, topped 105.00, and was poised to log a second day of gains after it shot to the upside on Friday, following May’s jobs report. Along the way, it also broke the 100-day moving average to the upside, having already blasted above the 50-day and the 200-day line.
• May’s nonfarm payrolls data suggested that the US economy is still running hot with employers tapping 272,000 hires to join the ranks of the working. The figure blew past estimates and also eclipsed April’s cool print of 175,000. What’s more, it pushed rate-cut expectations further back with analysts now calling for the first cut to interest rates to come as early as December. If a rate cut arrives this year at all.
• Later this week, markets will have a lot to digest as they try to figure out the Federal Reserve’s next step in the interest rate journey. On Wednesday, the consumer price index will show the rate of inflation for May. Wall Street is eyeballing a flat clip with another 3.4% growth, in line with April’s number. On the same day, the Fed will decide the benchmark interest rate where a hold at 5.50% is expected. More importantly, Fed boss Jay Powell will give his remarks and markets will tune in to listen to every word of the gentleman who moves markets with a simple “Good afternoon.”