Market Analysis: Hawkish Powell Halts the Decline of the Dollar Index, "Sell America" Sentiment Persists

ChainCatcher message, as investors weigh the latest trade developments in the U.S. and comments from Federal Reserve Chairman Powell, the recent sell-off of the dollar has paused. Trump stated that there has been "significant progress" in trade negotiations with Japan. Powell warned that tariffs could lead to higher inflation and noted that the Fed's obligation is to keep long-term inflation expectations "well anchored."

Pepperstone strategist Michael Brown stated that the dollar still faces further declines due to the "prevailing atmosphere of broad sell-off of the U.S." However, the significant depreciation of the dollar in a short period may cause the "downward momentum to pause."