May 09, 2022 - 06:02 PM 251 views
Currently, the US Dollar Index (DXY) is trading at its peak level
since 2000. When this week’s US April CPI data is published on Wednesday, the
economists at ING report commented that, "By excluding a much lower than
predicted inflation number, the DXY should toil at its peak level."
Lower fuel and used car costs are expected to bring headline and
core CPI down from recent highs. Any larger-than-expected drops could indicate
that the Fed does not need to be as aggressive in its hiking plans.
Apart from being at more unsteady levels than the most anticipated
US inflation numbers on Wednesday, we should forecast the US Dollar Index (DXY)
to toil still bigger.
There are a large number of Fed speakers too. But some emulsive of
the Fed's tightening policies should give us some thoughtful thinking at this
stage, and it seems risky to keep against the strength of the dollar.