Market Analysis: Hawkish Powell Halts U.S. Dollar's Decline, "Sell America" Sentiment Persists

According to Jinse, the recent sell-off of the dollar has paused as investors weigh the latest trade developments in the U.S. and Federal Reserve Chairman Powell's comments. Trump stated that "significant progress" has been made in trade negotiations with Japan. Powell warned that tariffs could lead to higher inflation and said the Fed's responsibility is to keep long-term inflation expectations "well anchored." Pepperstone strategist Michael Brown indicated that due to the ongoing "general sell-off America sentiment," the dollar is still at risk of further decline. However, the sharp devaluation of the dollar in the short term may cause "downward momentum to pause."