Fed chair Powell has seemingly called an end to the prospects of ongoing outperformance of the US dollar this year. The Fed is pretty much nailed on to cut rates in the July meeting. However, it seems as though we are now entering a choppy period of range trading for the dollar. Swings will come with the data. Yesterday’s core CPI rose at its strongest monthly gain since January 2018, seeing a year on year improvement to +2.1% (notably above the Fed’s 2% mandated target). This is dollar positive and yet the market knows that the Fed will still cut rates in the next meeting. Subsequently an intraday jump for the ... (full story)