Ever wonder if the US Dollar is on a non-stop treadmill or just catching its breath? Monday kicked off with the USD trading a bit soft, yet the Dollar Index (DXY) showed a surprising resilience—pushing its streak to ten consecutive sessions of gains. Now, here’s the kicker: history and a savvy rule of thumb suggest that currency moves this stubborn rarely last beyond 10-12 sessions without hitting a wall. And tech resistance around 98.25//30 is staring the DXY right in the face—thanks to that little June glitch sparked by Middle East ceasefire whispers. But hold on—while things might seem like a snooze fest in the FX market during summer’s lull, this week’s US inflation data is poised to shake things up. Sticky prices and tariff uncertainties keep the Fed on edge, reluctant to loosen the reins. So, if inflation keeps creeping at 0.3% month-over-month, we’re staring at a year-end headline inflation potentially north of 3%—no small potatoes for Fed policy or market confidence. The White House’s barbs at the Fed Chair? Oh, they’re just adding spice to this simmering stew. All signs suggest that while the USD might stumble, gold could be gearing up for a bull run above $3425. Intrigued? This rollercoaster isn’t slowing anytime soon. LEARN MORE
The US Dollar (USD) started trading Monday on a soft note but the Dollar Index (DXY) ended up a little firmer on the day overall, extending its run higher for a tenth consecutive session, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
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