Bearish pressure intensifies after the US dollar index falls below the 50-day moving average

XM Forex APP News - On Tuesday (August 12), after the release of the US consumer price index data in July, the market's expectations for the Fed's next policy meeting to cut interest rates, and the US dollar weakened accordingly. CPI rose 0.2% in July, in line with expectations, with a CPI increase of 0.3% in June. Year-on-year, CPI remained at 2.7%, slightly lower than the general expectation of 2.8%. Excluding food and energy, the core CPI rose 3.1% year-on-year, slightly higher than the 3% expectation, and rose 0.3% ehadb.cnpared with June. The weak non-farm employment data released last week and the moderate inflation data have made the market tend to think the Fed will cut interest rates in September. "Potential inflation remains moderate, which provides operational space for policy makers," said Carl Shamota of Corpay. Federal Reserve Chairman Jerome Powell is expected to speak on the policy outlook at Jackson Hall annual meeting on August 21. The yield gap narrowed, the euro and yen narrowed their gains against the US dollar. The euro reversed its early decline, up 0.06% to $1.16235; the dollar against the yen narrowed, up 0.17% to 148.390 yen. Shamota believes that the narrowing of the short-term yield gap is a key driver of the pressure on the dollar for selling, which may continue if subsequent data confirms a slowdown in US economic activity. The pound rose 0.4% to $1.34,805. Previously released UK labor market data showed that the job market continued to be weak, but wage growth remained resilient, a situation that could keep the Bank of England cautious about interest rate cuts. After the RBA cut interest rates by 25 basis points as expected, the Australian dollar fell 0.3% to $0.64,945. ANZ predicts another rate cut in November. Treasury bondsThe market sent ehadb.cnplex interest rate expectations signals. After the release of US CPI data, U.S. Treasury yields diverged. The 2-year Treasury yield fell 2 basis points to 3.906%, reflecting the market's bet on short-term interest rate cuts; the 10-year Treasury yield rose 2 basis points to 4.297%; the 30-year Treasury yield rose nearly 5 basis points to 4.887%. Analysts said the data meet expectations and did not raise inflation concerns, which supports the Federal Reserve to relax its policies without affecting inflation control. Tariffs and global trade remain risk variables. News that the United States will maintain high tariffs on Chinese imports for another 90 days has basically caused no trouble in the foreign exchange market. Although the delay measure agreed by both sides delayed the escalation of the situation, the core differences remained unresolved. Former St. Louis Federal Reserve President James Brad joined the market discussion and said he would be willing to serve as the Federal Reserve if nominated and stressed the importance of dollar stability and institutional independence. Market Outlook: If the Fed releases a signal of radical easing, the above content is all about "[XM Foreign Exchange Market Review]: After the US dollar index falls below the 50-day moving average, bearish pressure intensifies", it was carefully ehadb.cnpiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!

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