The index of USD (DXY) moved in a flat pattern around 90.70 since the European session yesterday until the Asian session some days ago. The American consumers inflation data release was also beyond the expectation. 

Before, that condition has grown the hope about the interest rate increase and support the sharp greenback strengthening. However, it seems that the market starts to predict a further condition. 

The biggest possibility is that The Fed will still not increase their interest rate although someday the inflation is higher. It is supported by other datas released by some institutions.

The US Producers Inflation Increases

Lately, the US bureau of Labor Statistics reported a data about the American producers inflation. It is known that the growth was about 0.6 percent month-over-moth. That happened in April. 

It means that the growth was twice from the market estimation which is only 0.3%. The year on year inflation also noted the highest record since 2010. The amount is for about 6.2 percent. 

That release shows many signs and evidences to the market participants. One of them is a fact that the inflation speed is quite good in that country. However, there is an interesting thing. 

It seems that the situation like that is not responded by the market participants. Some hours from that, the Fed’s governor made a statement and prediction above every thing happened. 

The Inflation May Beyond The Target

Christopher Weller as the Fed’s Governor stated that the inflation may beyond the target of 2 percent. That can happen only in two years ahead. Will that institution increase the interest rate? 

It seems that they will not add the rate until they see that the inflation speed is beyond the target in a very long time. Another possibility is if that level reachs the really high point or position. 

A day before that, Richard Clarida has been stating the same opinion. He thought that the weak job grow and a strong inflation level in April 2021 will not change the Central Bank plan. 

It is due to their decision to maintain the loose monetary policy. Many parties believed that the decision like that will be used in a very long time ahead. You just can wait and see. 

The Interest Rate Increase May Not Happen

In fact, the statements made by the federal reserve representatives bring some impacts for ghe market. One of them is that they should butty the hope for the increasing interest rate. 

It is especially in the closer times. That disappointing situation avoid the continuous USD rally. At the same time, it helps the rivals to make their position is more stable than before. That is the fact. 

Furthermore, the stock capital market investors also take the advantage of the decline happened a day before. They bought again in a lower price where this action is quite common. 

However, many analysts believe that the situation may be changed in the future. It is because the market is quite dynamic and several updates happened worldwide can affect the market. 

The Progress of US Dollar

Unfortunately, the US dollar only watches the limited continuity upward yesterday night. It is especially after the positive achievement happened on the New York closed session some days ago. 

That currency continued its strength when it was possible technically in the current market type. However, it must faces the downward participants such as the equity, obligation, and technical resistance. 

It is also related to some expired level options to close the New York session three years ago. That was explained by the Head of Forex Strategy Department of the Canadian Exchange Bank, Erik Bregar.