The St. Louis Federal Reserve's James Bullard has crossed the wires and stated that the market-based expectations of inflation are "now relatively low" and that the economy is growing faster than previously thought with unemployment below the long-run rate and output above its potential.
He said inflation "remains too high" but note that it has come down recently noting that a "disinflationary" process had begun and could continue with additional Fed rate increases.
"Continued policy rate increases can help lock in a disinflationary trend during 2023, even with ongoing growth and strong labor markets, by keeping inflation expectations low."
US Dollar update
As the above analysis illustrates, the US dollar, as measured against a basket of currencies, has been breaking to the upside and out of a geometrical consolidation's top side resistance albeit on the backside of the prior bullish trends supporting lines.
It has been a slow grind higher for the US Dollar and not even firmly hawkish Federal Reserve rhetoric and data have been able to free up the bulls from the clutches o the bears. However, should the DXY close firmly above 103.65/80 this week, a case for higher could be drawn, as per the following daily chart analysis:
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.