Dollar on the backfoot ahead of European trading ...Middle East

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Dollar on the backfoot ahead of European trading

US CPI report yesterday was a hotter one but again, it could perhaps owe a bit to seasonality as warned. In any case, all it served was to reaffirm Fed chair Powell's stance during his testimony this week that the Fed will be pausing on rate cuts for the time being.

"The announcement (reciprocal tariffs) might not come today but it still could later in the week. So, just keep your eyes and ears peeled. But in the meantime, I reckon silence might be golden for risk sentiment in general. See no evil, hear no evil, speak no evil.

    A firm technical drop there could see a quick run towards 1.4100 next for the pair as the dollar comes under pressure across the board.

    This article was written by Justin Low at www.forexlive.com.

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