USD: Trump gets his FOMC dove – ING
|President Trump nominated Stephen Miran to fill the vacant FOMC seat until the end of January, pending Senate confirmation in September, ING's FX analyst Francesco Pesole notes.
DXY can stabilise around 98.0 today
"Miran has echoed Trump’s dovish calls and Fed criticism of late, as well as downplaying the inflationary impact of tariffs. He’s widely expected to join Christopher Waller and Michelle Bowman in the dovish camp for the few meetings he will attend, with a non-negligible risk he might try to build consensus for a 50bp move. But this is an interim position, and reports suggesting that Waller (a more moderate dove than Kevin Hassett) is now the favourite to replace Fed Chair Jay Powell may well have mitigated the downside impact for short-term rates. The dollar was only modestly weaker on the announcement."
"Today is a very quiet one on the macro side, with no releases in the US. Yesterday, initial jobless claims snapped back higher to 226k after a prolonged decline. Continuing claims – which are a gauge of the difficulty to re-enter the workforce – spiked to 1974k, which is the highest since November 2021, and consistent with the narrative of a faster deterioration in the jobs market."
"We think DXY can stabilise around 98.0 today, given the lack of market drivers and proximity to Tuesday’s CPI release, but the bias remains bearish."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.