Euro Sell-Off Intensifies Following CPI Miss, Spurring Broad-Based Dollar Rebound - Action Forex
Dollar is staging a broad-based rebound today, driven in part by the selloff in Euro. However, a more significant factor behind Dollar's recovery appears to be the exhaustion of selling momentum as the month draws to a close. This rebound continues after both headline and core PCE inflation data in US matched expectations, indicating that disinflation is underway, albeit not at a pace drastic enough to significantly alter Fed's policy stance. Despite these developments, it remains premature to declare a bullish reversal for the Dollar, and the market will be closely watching the extent of this rebound.
Dollar is staging a broad-based rebound today, driven in part by the selloff in Euro. However, a more significant factor behind Dollar's recovery appears to be the exhaustion of selling momentum as the month draws to a close. This rebound continues after both headline and core PCE inflation data in US matched expectations, indicating that disinflation is underway, albeit not at a pace drastic enough to significantly alter Fed's policy stance. Despite these developments, it remains premature to declare a bullish reversal for the Dollar, and the market will be closely watching the extent of this rebound.
