Post #15885

DXY Holds Firm as Sticky Inflation Delays Fed Cut Expectations DXY is holding above 97.7, but the bigger level remains 98. The dollar still needs a clean break and hold above 98 to show real strength. Until then, this looks more like stabilization than a true breakout. The dollar stayed firm this week as hotter-than-expected inflation reinforced the view that the Fed may stay on hold longer. January PPI rose 0.5% MoM, above both December’s 0.4% and the 0.3% forecast, signaling that price pressures are still sticky. Labor data also came in supportive, with both initial and continuing jobless claims below expectations, pointing to a stable labor market. That stronger data has pushed rate-cut expectations back. Markets are still pricing in at least two cuts this year, but the first is now fully priced for July instead of June. Traders are also watching potential tariff increases from 10% to 15% for some countries, along with ongoing U.S.-Iran nuclear talks next week. - Alan