Hot Inflation and Hawkish Fed Rhetoric Lift the Dollar

Hot inflation and hawkish Fed rhetoric are raising discount rates and weighing on growth stocks; long-duration cash-flow technology names such as GOOGL may be adversely affected by this environment. The technical picture is indecisive: RSI at 49 is neutral, MACD is below its signal line, and price is slightly below SMA20 but holding above SMA50. Despite a 1.47% gain over the past 24 hours, the news flow may limit momentum in the short term. There is not yet a strong technical breakdown that would turn the direction lower, so confidence is at a moderate level. Mild downward pressure and volatility are expected within 1-3 days.

Hot inflation and hawkish Fed rhetoric are fundamentally supportive for DXY; the price is already above its 20- and 50-day moving averages and has risen 0.74% in 24 hours. However, with RSI at 77.7, it is in overbought territory, which could limit upside potential in the short term and increase the risk of profit-taking. MACD is in positive territory and above its signal line, so momentum remains upward. Overall, the 1-3 day outlook is slightly bullish but cautious due to overbought conditions; a sharp pullback is also possible.

Hot inflation data and hawkish Fed rhetoric are creating an environment favorable to the USD; upward pressure on USDJPY continues. The price is trading above the SMA20 and SMA50, slightly above the MACD signal line, and momentum is positive. However, RSI14 stands at 76 in overbought territory, which raises the risk of short-term profit-taking. For this reason, although the direction is upward, I assess it with limited confidence; resistance around 159 and support at 158.85 on pullbacks can be monitored.

Hot inflation and hawkish Fed rhetoric are supporting the dollar and creating downward pressure on EURUSD. The price is trading at 1.1135, below the SMA20 and SMA50, indicating a weak short-term trend. RSI14 stands at 25, near oversold territory; while this raises the possibility of limited rebound buying, the main direction remains downward. MACD is below its signal line and in negative territory, with momentum favoring sellers. In the 1-3 day outlook, as long as the dollar remains strong, the downward bias in the pair is likely to prevail, though given the oversold condition, a gradual pullback is expected rather than a sharp decline.