Post #15920

Jobless Claims Beat, but the Real Test Is Tomorrow DXY is back in control after briefly easing off three-month highs. U.S. jobless claims came in better than expected, giving the dollar another boost. The real test is still ahead: tomorrow’s Unemployment Rate and NFP will decide whether this move extends or cools. The dollar is strengthening because global markets are trading risk-off. With the Middle East conflict driving volatility and energy prices higher, investors are prioritizing liquidity and safety—right now, USD is the safe haven that’s actually working. Even traditional hedges like gold haven’t been absorbing flows the usual way, which keeps the dollar bid. This week’s rally is being reinforced by the inflation angle. Higher energy prices are reviving inflation concerns and forcing markets to reassess the path for rate cuts. As a result, Fed easing expectations have been pushed back, and the dollar is benefiting from the “higher for longer” repricing. - Alan