The foreign exchange market experienced a relatively stable US Dollar Index this week, with the USD achieving a notable three-week peak against the Japanese Yen. This movement reflects market reactions to the de-escalation of tensions between Iran and Israel alongside a shift in Federal Reserve policy. Fed Governor Waller expressed openness to a potential interest rate reduction as early as July, while upcoming testimony from Fed Chair Powell is anticipated to impact short-term currency and asset price fluctuations.
Meanwhile, the Bank of Japan maintained its current monetary stance, though economic forecasts increasingly suggest a possible rate increase before autumn. Contrastingly, the Bank of England held rates steady amid a divided vote, signaling rising internal disagreements. Despite encouraging developments in Middle East diplomacy, markets remain vigilant due to persistent inflationary pressures and ongoing trade conflicts, with central bank decisions worldwide under close scrutiny.
According to Bitunix analysts, Powell’s congressional testimony and evolving geopolitical dynamics may introduce heightened volatility. Investors are advised to adopt a cautious approach, awaiting clear directional signals before adjusting positions. Bitcoin’s support zone remains robust between $103,300 and $102,700, sustaining its short-term upward momentum.