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U.S. dollar heads for best week since 2022 after getting an unexpected boost from Fed’s Powell - MarketWatch

1. DXY surged over 1% after Powell downplayed rate cuts. 2. Best dollar performance since 2022 with a 2.7% increase over five days. 3. Fed likely to hold interest rates for rest of 2025, boosting dollar confidence. 4. A new trade deal with Europe positively impacted the dollar's strength. 5. Market anticipates a potential further upward trend for DXY into early August.

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FAQ

Why Bullish?

The dovish stance from Powell reinforces dollar strength, reminiscent of past Fed policies boosting currencies.

How important is it?

The article addresses potential interest rate movements and trade influences directly impacting DXY's outlook.

Why Short Term?

Upcoming Fed meeting in September could redefine market expectations; short-term trends in focus.

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