Wages are still rising. Fed will shock the market by raising 50% on Feb 1st.

Harker: I expect the Fed to get rates just over 5%, and then hold

That's what the market wants to believe. It is wrong sometimes, so be very cautious. There is still the question of whether this is enough to convince Powell who has been quite insistent on hiking aggressively as long as inflation is above 2% and ...

US inflation points to 25 basis point Fed moves from now on

Until the Fed proves the markets wrong.

Fed's Collins backs slowdown as support mounts for smaller rate move - NYT

I think Powell will surprise the market deciding 50 bps is still appropriate.

Harker: The Local and National Economic Outlook

It's not so simple. A slower hike doesn't automatically translate into a weaker USD. If a talk of a recession enters the conversation, Wall Street will reframe the risk-on issue into that of buying more US bonds, which in effect makes the USD ...

Fed's Collins backs slowdown as support mounts for smaller rate move - NYT

I don't know about that. If the US enters a recession, Europe will follow shortly afterwards. The Fed is hiking more aggressively than ECB. US dollar will still be dominant for the foreseeable future.

Currency experts are turning bullish on the euro as Europe looks to hold off a recession

For now, this economist is engaging in wishful thinking.

The Fed will start cutting rates this summer as core PCE inflation will drop to 2.1%, says...

That makes no sense. Higher interest rate just incentivizes investors to go long USD. One of the ways to do that is to short EUR/USD. Buying XAU or bonds is the worst thing you can do as an investor under this situation.

Powell: Panel on "Central Bank Independence and the Mandate—Evolving Views"

Perhaps, since "unpopular measures" implies hiking aggressively when people don't want it.

Powell: Panel on "Central Bank Independence and the Mandate—Evolving Views"

It'll come crashing back down after Powell will assert he will continue to raise rates aggressively.

EURUSD jumps higher in ascending channel

If China wants Eastern Europe's cooperation, they're going to have to denounce Russia's invasion of Ukraine.

China’s Xi: China is to boost cooperation with Central and Eastern Europe - TV

Outdated news. I think the Fed will hike more aggressively than predicted.

Fed agrees to slow interest rates and other economy stories you need to read this week

Never buy into anyone's predictions. The future has absolutely nothing to do with the present. There's only a correlation between the two and it wildly varies.

Bostic: Unemployment is going to rise a little bit

The market never conforms to anyone's expectations. I'm sure you can now see why most people don't make money trading.

The Employment Situation -- December 2022

LOL to those who keep saying USD should get stronger by now. Thanks to the recent PMI Services news, I suppose the market wants to keep things interesting... seeking liquidity and maintaining the 95% failure rate for retail traders.

The Employment Situation -- December 2022

While it is decreasing, it is still too high.

ECB's Kazaks: I expect significant rate increases at the next two meetings

Sounds still pretty hawkish to me.

Powell: Need substantially more evidence of lower inflation

Fed will still hike for the foreseeable future. We have yet to see the full effects of the previous aggressive hikes in the economy. We'll begin to see that in Q1-Q2 2023.

Consumer Price Index - November 2022

This won't necessarily move the Fed's needle. Don't forget Powell talked about rising wages having an effect on inflation. Also, the Fed will wait deciding on anything until consecutive CPI reports tell the same story.

Consumer Price Index - October 2022