DXY: Under pressure from the futures market – DBS

Source Fxstreet

The Dollar Index (DXY) depreciated 1.7% in the first fortnight of July to 104.09. Fed officials have become more confident about US inflation resuming its decline, DBS senior FX strategist Philip Wee.

DXY depreciates 1.7% in the first two weeks of July

“DXY depreciated 1.7% in the first fortnight of July to 104.09, back to early June lows. The Greenback is under pressure from the futures market, increasing the probability that the Federal Reserve (Fed) will start lowering rates in September to 94.5% vs. 56.5% at the last FOMC meeting on June 12.” 

“Fed officials have become more confident about US inflation resuming its decline after a sticky first quarter. CPI inflation fell a third month and posted its first negative month-on-month reading since May 2020. The Fed’s favourite inflation gauges, the PCE deflators, should mirror the softer CPI readings.”

“PCE inflation fell to 2.6% YoY in May, hitting the Fed’s forecast for 4Q24. Core inflation was more impressive by declining to 2.6%, below the Fed’s 2.8% forecast.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Anthropic files for a $2 trillion IPO — the $80.7 billion loss is the decoy, the $450 billion compute bill is the riskAnthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.
Author  Irene Q.
Oct 27, Tue
Anthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.
placeholder
Brent's $115 front month sits $4.6 above January — the $14 spread to WTI is the supply-risk premiumDecember Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
Author  Irene Q.
Oct 28, Wed
December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
placeholder
The Fed held at 3.75%–4.00% — and two officials voted to hike. December is now 85% pricedThe FOMC held by a 10–2 vote, with Governor Cook and Cleveland Fed President Hammack dissenting for a 25bp hike. Chair Warsh offered no forward guidance and no dot plot, the 2-year yield fell 8bp to 4.70%, and the dollar slipped to 101.84 even as markets moved December hike odds to 85%–87%. Tonight's Q3 GDP and September core PCE are the next referee.
Author  Irene Q.
Oct 29, Thu
The FOMC held by a 10–2 vote, with Governor Cook and Cleveland Fed President Hammack dissenting for a 25bp hike. Chair Warsh offered no forward guidance and no dot plot, the 2-year yield fell 8bp to 4.70%, and the dollar slipped to 101.84 even as markets moved December hike odds to 85%–87%. Tonight's Q3 GDP and September core PCE are the next referee.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 30, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 30, 2026. Read on for the details.
Author  Mitrade
Oct 30, Fri
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 30, 2026. Read on for the details.
placeholder
US GDP grew 3.4% and core PCE held at 3.1% — December is now a hike trade, not a cut tradeUS Q3 GDP rose 3.4%, above the 3.1% estimate, while September headline PCE hit 3.6% and core held at 3.1%. December hike odds are near 90%; inventories, AI capex and energy explain why.
Author  Irene Q.
Oct 30, Fri
US Q3 GDP rose 3.4%, above the 3.1% estimate, while September headline PCE hit 3.6% and core held at 3.1%. December hike odds are near 90%; inventories, AI capex and energy explain why.
Related Instrument
goTop
quote