Elliott Wave Live: Dollar Can Stay In Uptrend If Stocks Pullback, Watch JPY!
Last week Powell delivered a speech, emphasizing that there’s no rush for rate cuts as the economy remains strong, jobs data is stable, and inflation is still above 2%. These are significant remarks, suggesting that the Fed may hold steady at upcoming meetings.
Despite Powell’s comments, the USD index paused for a bit, but that looks like a correction within uptrend, rather than the top for the buck. In fact, now that Powell has essentially confirmed his “hawkish” outlook, the market could be viewing this as risk for stocks, and we have experienced a sharp reveral down on Friday, trend that can resume lower this week. If that would be the case, DXY can resume up to 108.
At the same time JPY can see some upward movement as well especially if risk-off remains as the situation between Ukraine and Russia is getting worse.
For more analysis check the video below, where we also covered cryptos, including ripple
Grega
www.wavetraders.com
On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
