President Trump’s remarks on Thursday reinforced his push for rate cuts, though he stopped short of threatening Powell’s removal, which provided temporary relief to the dollar.
BOJ Faces Political Fallout as Yen Holds Firm
In Japan, a recently signed trade deal with the U.S. theoretically provides more leeway for future Bank of Japan rate actions.
Yet, domestic political uncertainty following a major electoral setback for Prime Minister Shigeru Ishiba’s coalition has introduced fresh complications for BOJ policy planning.
The yen’s resilience continues to weigh on the dollar, contributing to broader softness in the DXY.
Market Forecast: Dollar Faces Near-Term Resistance, Fed Rhetoric Key
While the DXY is staging a short-term technical recovery, the broader picture remains pressured by political risks and cautious central bank expectations.
The Fed’s upcoming commentary will be critical. If Powell signals prolonged rate stability or hints at cuts under political pressure, the dollar could struggle to hold recent gains.
A sustained break above 98.400 would challenge that view, but for now, rallies are expected to face resistance as traders await clarity from central bank leadership.
More Information in our Economic Calendar.
