According to Jin Ten data, Paul Mackel, global head of foreign exchange research at HSBC, stated that changes in U.S. policy and the upcoming inflation data could dominate the tone of the dollar this week. The year-on-year increase in CPI for June is expected to rise slightly compared to May.
The dollar shows signs of a more conventional reaction to data; if the data is weak, it could become a stumbling block for the dollar. Additionally, announcements regarding potential tariffs on countries such as Brazil, Canada, the EU, and Mexico, as well as on products like pharmaceuticals and copper, increase uncertainty.
These announcements may provide short-term support for the dollar, but other policy risks must be considered, such as the recent criticism of Federal Reserve Chairman Powell regarding the costs of headquarters renovations.
