Central Bank Speeches and Economic Data Drive Currency Markets Amid Disinflation Concerns
2 July 2024, 16:41
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The recent speeches by Fed Chairman Powell and ECB President Lagarde have shed some light on the current state of disinflation and progress towards reaching the 2% inflation target. Powell's acknowledgment of progress in disinflation has helped boost the Pound Sterling and EUR/USD pairs, while also causing the US Dollar to chop around as markets digest the implications of an unsustainable US deficit.
The USD/JPY pair remains at historical highs, indicating continued strength in the US Dollar despite the uncertain macroeconomic environment. The DXY index consolidates within a range of 105.3-106.2, reflecting the overall stability in the US Dollar.
On the other hand, the Mexican Peso is not favorably viewed by markets as the possibility of a Trump victory increases, leading to further downside pressure on the currency. Natural Gas also remains stuck in correction mode, with expectations of more downside ahead.
Overall, the markets are closely monitoring central bank speeches and economic data releases for clues on the future direction of currencies. It is important to stay informed and adapt trading strategies accordingly to navigate the current volatile environment.
Learn about my trading tools: https://www.mql5.com/en/users/philip.edits/seller
The USD/JPY pair remains at historical highs, indicating continued strength in the US Dollar despite the uncertain macroeconomic environment. The DXY index consolidates within a range of 105.3-106.2, reflecting the overall stability in the US Dollar.
On the other hand, the Mexican Peso is not favorably viewed by markets as the possibility of a Trump victory increases, leading to further downside pressure on the currency. Natural Gas also remains stuck in correction mode, with expectations of more downside ahead.
Overall, the markets are closely monitoring central bank speeches and economic data releases for clues on the future direction of currencies. It is important to stay informed and adapt trading strategies accordingly to navigate the current volatile environment.
Learn about my trading tools: https://www.mql5.com/en/users/philip.edits/seller
