Dollar Strengthens Slightly Amid Thin Holiday Trading
The US dollar strengthened slightly at the start of the week, but its movement remained limited due to thin liquidity during the Presidents Day holiday. Revacy Fund CEO Zaheer Anwari believes the current dollar gains are driven more by technical factors—a quiet market—than by a truly strong shift in sentiment.
He believes the dollar remains vulnerable to further weakening after Friday's lower-than-expected US inflation data, which reinforced expectations for further interest rate cuts toward the end of the year. Market focus now shifts to the Fed's FOMC meeting minutes on Wednesday, followed by PCE inflation data and fourth-quarter economic growth on Friday.
If the PCE confirms a broader slowdown in inflation, Anwari expects the dollar and US bond yields to decline. Meanwhile, the dollar index (DXY) rose 0.2% to 97.079.
Source: Newsmaker.id