USD is dropping in light of the ceasefire - but why?
Why for example is Usd/Jpy in decline on good risk news - surely Yen should be selling?
That’s the thing about FA - it lives in the now context - what is happening right now.
Pres Trump has been pressuring the Fed to lower rates, they have been resisting, recently quoting inflation risks re tariffs - as we know higher rates equates to higher USD, equally the reverse.
Tariff risks have settled down, but something has taken it’s place big time - oil price.
Again higher energy prices equals higher inflation etc etc.
That second risk has just been eliminated whilst the ceasefire remains.
Edit: lower inflation leaves the Fed with fewer excuses to resist Pres Trump’s pressure to reduce - even stocks are getting a whiff right now - Powell stating now that poss inflation from tariffs June/July/Aug - if nothing much then cut baby cut 