DXY is right at resistance. Rate hikes are behind us. The Fed is going to cut starting today, as many as 7 times by April next year. Is this the turning point for DXY?
CME Fedwatch Tool reading indicates zero probability of Fed rate hike for rest of 2019 and up to 5 cuts (total 125 points) by last meeting.
Despite the small numbers involved, Fedwatch tool now indicates possibility of two rate hikes in 2019 and no cut in the first half of the year. This is a hawkish swing from just 7 days ago.
Odds of further Fed hikes in 2019 dinimished to virtually zero based on CME Fedwatch Tool. DXY reinforces this with down trend price action.
This post looks at DXY analysis from a bullish and bearish angle. It might be confusing but I am merely point out how Dollar bulls and bears could justify their point of view. My unqualified observation: DXY could potentially go much higher. Maybe crazy enough to go back to 100 by end of this year.