Are markets being too dovish about the Fed and the dollar? Or is this really where the turning point is and we start to see more aggressive takes on the potential for rate cuts in the months ahead?
USD/JPY is seeing a bit of a bounce off 130.00 since the lows on Friday, with the rebound helped by 10-year Treasury yields also holding the line near 3.30% at the lows this year. EUR/JPY is also still somewhat hanging on to daily support from the 10 February low at 139.55 and has been bouncing off that level in the past two weeks.
As it would seem, the ECB is in contention for being one of the most hawkish central banks at the moment and yet the euro is still undecided. EUR/USD tried to keep a push above 1.0800 but failed and there are some questions being posed again now.
Elsewhere, gold once again faced a rejection at the $2,000 mark and it’s pretty much back to the drawing board ahead of month-end and quarter-end trading.
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