Tag: Fed

DXY - Safe-Haven Premium Unwinds After Hormuz MOU, Entering the BoJ and Fed Decision Week

DXY Spotlight: The Haven Premium Drains, the Dot Plot Decides The dollar index opens the week at 99.157, a ten-day low, as the confirmed US-Iran memorandum over the Strait of Hormuz drains the war premium that had propped the greenback through the conflict phase. The reversal is broad and immediate. The volatility index collapsed more than nine percent to 17.67, the S&P 500 climbed 1.20 percent to 7,520, crude sank 4.38 percent with WTI at 80.59, and the yuan pushed to a three-year high. This is no longer a haven trade. It is a transitional regime where a tactical downside lean prevails until the first dot plot under Warsh resolves the structural question. On the daily, the index completed a five-wave impulse into the 101.5 peak in March, then turned corrective. Wave (a) fell to 98.0, wave (b) bounced to test the 100.032 to 100.398 resistance band and failed precisely at the 100.40 invalidation, and wave (c) is now unfolding lower. The measured target sits at 98.64, then 97.695, extending toward 97.05 should momentum build. The 98.00 pivot is the line that matters: a decisive close beneath it confirms acceleration. The structural anchor is the real yield. Subtract the 4.2 percent May CPI from the 4.428 percent ten-year and you get roughly 0.23 percent, far beneath the one percent threshold that would cement a durable dollar uptrend. Until inflation cools or the Fed hikes, the ceiling holds. That is why gold can rise 2.58 percent to 4,327 even as risk appetite recovers; de-dollarization demand and low real yields are dominating, and the inverse gold-dollar correlation is reinforcing the downside. The basket mechanics lean the same way. The euro, 57.6 percent of the index, rose to 1.1614 and drags the dollar lower directly, while USDJPY at 160.04 stalls into the Bank of Japan. Two events define the week. The Bank of Japan meets June 16 with a sixty-six percent hike probability, and with Ueda hospitalized, Uchida holds the press conference whose first hundred word

Jun 15, 2026

EURUSD — Iran and Israel Halt Attacks, Dollar Retreats from Two-Month High, and Wave (c) Is Still in Progress

EURUSD 1.1578 | Iran-Israel halt | 09 June 2026 Iran and Israel announced a halt to attacks following a Trump appeal. Dollar retreated from its two-month high. EURUSD bounced 43 pips from 1.1535 to 1.1578. Brent fell from $98 to $92.86. VIX declined from 21.57 to 18.06. The question is whether this is a structural reversal or a tactical relief rally. The answer is in what has — and has not — changed. What has changed: the safe-haven dollar premium from Iran-Israel escalation is partially unwinding. Germany's Industrial Production grew +0.4% MoM in April — the first positive reading since the Iran war began. What has NOT changed: NFP 172K, Fed hike probability at 74.8%, corrected real yield at 0.740% and rising toward 1%, the ECB-Fed differential of 1.25-1.50 percentage points in the dollar's favor, and the wave (c) corrective structure targeting 1.1200. The clearest structural tell: USDJPY at 160.189 is not declining despite the broad dollar retreat. In a pure geopolitical unwind, the yen would be surging. The fact that it is holding above 160 confirms the structural rate differential dollar bid is intact — today's EURUSD bounce is tactical, not structural. SocGen Juckes: "The big event this week is the US CPI data. A big upside surprise and the dollar gets a bid. A benign print and that is a different story." Invalidation: daily close above 1.1920. Wave (c) targets: 1.1200 → 1.0950. Do not add directional exposure before CPI Wednesday June 11. Conviction: Medium, Neutral-to-Mild Bear.

Jun 9, 2026

DXY — Iran Strikes Israel, Warsh Declares Independence, and the Deal Decompression Narrative Is Dead

DXY 99.971 | VIX 21.57 | 08 June 2026 The deal decompression narrative is dead. Three weeks of DXY Medium Bear analysis has been overridden in a single weekend. On Sunday night, Iran launched multiple barrages of ballistic missiles toward Israel — the first bombardment since the fragile April 8 ceasefire. Israel struck back on Monday with airstrikes on central and western Iran, while a US military base in Saudi Arabia came under fire in the most serious exchange of hostilities since the ceasefire. Brent has rebounded from $91.69 to $96.99. VIX has spiked from 15.73 to 21.57. S&P 500 is down 200 points. DXY is surging toward the 100.40 invalidation level that, if closed above on a daily basis, formally terminates the Medium Bear framework. Yahoo FinanceMarketPulse The second driver is Warsh. At his Senate confirmation hearing, the new Fed chair framed political pressure as a "test of independence rather than a threat" and committed the Fed to operating on "best assessment of what will serve the public rather than the preferences of the president." EY-Parthenon chief economist notes the June 16-17 FOMC "could acknowledge it may have to hike rates if inflation remains above the 2% target." With May NFP beating at an estimated 130-160K and oil re-accelerating on Iran-Israel, the hike probability has moved from tail to meaningful base case. Investing.com Real yield corrected: 0.736%. Still below 1% structural threshold — but the tactical safe-haven bid and inflation re-acceleration are overriding it. Invalidation of bear count: daily close above 100.40. Bull targets if invalidation: 101.00 → 101.50. Bear survives if: Iran-Israel de-escalates within 48-72 hours. Warsh FOMC June 16-17 is the gating event. Conviction: Medium-High Bull.

Jun 8, 2026

EURUSD — NFP Beats, ECB Cuts to 2.25%, and the 1.1600 Floor Is Holding a Structural Conversation

Jun 5, 2026

USDJPY Breaches 160 — Gulf Hostilities Boost Dollar, BoJ Intervention Clock Is Running, and the June 16 Hike Is Now 66% Priced

USDJPY 159.897 | intraday high 161.946 | 03 June 2026 USDJPY touched 161.946 this morning — clearing the prior intervention zone — then reversed 200 pips. That single candle is the most important price action of the week. It is either the market self-correcting ahead of MOF action, or verbal intervention has already begun. The structural bear case is built on three pillars that the data pipeline is obscuring. First, JP10Y is not 1.47% as the stale pipeline reads — the chart sidebar shows 2.621%. The corrected US-JP spread is 1.834%, not 2.985%. Carry trade math is deteriorating faster than most analysis reflects. Second, BoJ June 16 hike probability has moved to 66%. The April 28 meeting produced three dissenters voting to hike immediately, and Shunto wages showed 5.09% for a third consecutive year above 5%. Third, the MOF intervention asymmetry is severe: the Ministry spent $62 billion in 2024 defending the yen, the precedent near 160 produced an 800-pip round trip, and the firepower remains. The tactical complication is Gulf hostilities. Trump rejected the halt in US-Iran talks. Brent has retraced above $100. Oil above $100 is dollar-positive and yen-negative simultaneously — Japan is the world's fourth-largest oil importer. This dual channel is why the pair broke 160 today. It reverses the moment a deal is signed. Invalidation: daily close above 161.346. Bear confirmation: daily close below 159.000. Wave (c) targets: 152.612 → 147.782. Today's daily close is the definitive tell. Conviction: Medium-High Bear.

Jun 3, 2026

DXY: Dollar Holds Its Breath — Warsh Sworn In, Iran Deal Unsigned, and the 99 Floor That Could Break

Jun 1, 2026

USDJPY: Yen Holds Steady Amid Fresh Verbal Warning - USDJPY Is Sitting at the Peak of a Completed Wave Structure

USDJPY 159.329 ngày 29/05/2026 đang ở đỉnh của một wave structure đã hoàn chỉnh, với ba lực bearish align đồng thời - và 160.00 là line phân định mọi thứ. Headline sáng nay: "Yen holds steady amid fresh verbal warning." BoJ đã escalate language - đây là bước đầu trong ladder: verbal warning, strong verbal warning, actual intervention. Với USDJPY ở 159.329 và approaching 160, thị trường đang ở giữa bước 1 và 2. Lịch sử BoJ confirm: họ đã intervene tại 160-162 trước đây. "Fresh verbal warning" hôm nay là signal họ sẽ làm lại. Brent drop thêm $3.18 chỉ trong một đêm, từ $94.87 xuống $91.69. Total drop từ đỉnh $111.27 ngày 18/05 là $19.58 trong 11 ngày. Iran deal decompression đang accelerate, không slow down. Điều này hit USDJPY qua double channel: Japan là net energy importer lớn nhất thế giới nên oil rẻ hơn là structural JPY bid, đồng thời oil drop compress US inflation expectations, giảm Fed hike odds, weaken USD. Cả hai vector cùng bearish USDJPY. Chart D1 confirm bằng Elliott Wave structure rõ ràng: completed 5-wave impulse từ đáy 130 lên đỉnh 161-163, ABC correction đang trong wave (c) với measured targets 152.612 (1.0 extension) và 147.782 (1.618 extension). PCE 3.8% hôm qua là short-term USD support nhưng không reverse structural bear thesis - nó chỉ confirm oil shock đang transmit vào inflation, và khi oil tiếp tục drop, PCE sẽ compress và Fed pivot path sẽ reopen. Conviction Medium-High Bear. Tell duy nhất: 160.00. Approach đó thì BoJ intervenes và wave (c) về 152.612 accelerates. Brent dưới $88 trong 24-48h là tell thứ hai.

May 29, 2026

GBPUSD: Dollar Steadies as Hopes for Iran Peace Deal Waver - Sterling Holding Ground But the RSI Is Telling a Different Story

GBPUSD 1.3454 today. Price is attempting recovery. But the RSI is not following. That divergence is the most important signal on this chart - and it is the only instrument in this week's series where RSI, not macro or price level, is the primary signal. Here is what the chart is showing: Two competing Elliott Wave counts are fighting for control. Orange count: completed 5-wave impulse from 2024 lows, correction incoming toward 1.30-1.31. Blue count: ABC correction with wave (c) targeting 1.3008-1.3077. Both point the same direction. RSI bearish divergence - price making higher lows, RSI making lower highs - is the tiebreaker. It typically appears at the end of wave (b) or terminal wave (5). Both are pre-correction setups. What makes GBPUSD unique in this week's series: Rate differential is near-zero. UK10Y 4.50% vs US10Y 4.493%, spread +0.007%. No structural carry advantage from either side. Unlike EURUSD (-1.568% headwind for EUR) or EURGBP (+1.51% favoring GBP), GBPUSD will be driven entirely by macro narrative. Not carry. Not rate differential. Just: Iran deal or no deal, and what the Fed says next. The macro picture today: oil market and FX market are diverging. Brent down $16.25 from the 18 May peak - oil still pricing the deal. But DXY steadied at 99.07 and the headline is "dollar steadies as deal hopes waver." Two markets, two different reads on the same event. Today is the most event-dense day of the week. Logan speaks. Cook speaks. ADP drops. EIA releases. Four catalysts simultaneously. Base case (45%): Logan hawkish, ADP strong, DXY bounces to 100+, GBPUSD retraces to 1.33-1.34. RSI divergence confirms. The only tell that matters: watch RSI after Logan speaks. If RSI turns up and GBPUSD holds 1.3400 - divergence resolving bullish. If RSI keeps declining while price attempts 1.35-1.36 - correction to 1.3077 is next. Conviction: Medium. Bias: Mildly bearish near-term. #GBPUSD #Sterling #DXY #IranDeal #ElliottWave #RSIDivergence #MacroAnalysis #FedWatch #BoE

May 27, 2026

Euro Wobbles as Markets Cling to Hopes for Middle East Peace Deal - Two Competing Scenarios Are Fighting Directly on the Chart

**EURUSD 1.1633 is not a simple dollar-weakness trade. It is a market suspended at the exact crossroads between two Elliott Wave scenarios pointing in opposite directions.** Here is the paradox no one is talking about: The Iran deal is simultaneously bullish AND bearish for EUR depending on your timeframe. - Short-term: deal progress weakens dollar, EURUSD rises - Medium-term: deal signed = Hormuz reopens = de-dollarization urgency fades = structural EUR bid partially unwinds = EURUSD corrects toward 1.13-1.14 The same catalyst. Two opposite outcomes. Different clocks. The chart shows this tension clearly. From the 2022 low at 1.0353, EURUSD completed a 5-wave impulse to 1.2050+, then entered ABC correction. Wave (c) is currently developing with two live scenarios: Bear: extends to 1.1400 then 1.0795 (1.618 extension) Bull: correction done, next impulse toward 1.19-1.21 Rate differential of -1.568% (DE10Y vs US10Y) favors USD structurally. ECB cutting at 2.50% while Fed holds. Historical precedent: rate differential wins over 6-12 months. The only force holding EUR above 1.16 despite all of this: central bank de-dollarization reserve reallocation. Price-insensitive. Does not reverse in weeks. Wednesday 27 May is the decision day. Two catalysts land simultaneously: Logan (Fed) speaks + ECB Financial Stability Review drops. Hawkish Logan + dovish FSR = double whammy for EUR. **The only level that matters: 1.1700** Break above = bull confirmed, target 1.19-1.20 Fail below 1.15 = bear activated, target 1.0795 No conviction trade exists between these two levels. Waiting for Wednesday. #EURUSD #Euro #DXY #MacroAnalysis #ElliottWave #IranDeal #Dedollarization #ECB #FedWatch #IntermarketAnalysis

May 26, 2026