USD: Strengthening but vulnerable – MUFG
The US Dollar strengthened overnight, holding above key support levels, particularly against the Japanese Yen. However, the report from MUFG highlights that the US Dollar may remain vulnerable amid policy risks. The Fed's recent decision to hold rates reflects a balanced macro risk outlook, but dissenting opinions within the Fed suggest potential for future cuts.
Dollar remains strong yet at risk
"The US dollar strengthened overnight and held above key support levels for now, led by gains against the yen after comments from Treasury Secretary Scott Bessent reinforced Washington’s strong dollar posture."
"However, we think the US dollar may still stay vulnerable amid policy risks."
"Fed Chair Powell said that growth remains solid, unemployment is steady near 4.4%, while inflation at 2.7% is still somewhat elevated."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
