Watching the dollar's dip post-CPI, implications for silver
Anyone else noticing this substantial drop in the DXY today? Down almost 3% to 93.98 seems like a pretty significant move for a single session, especially with the CPI data coming in a bit softer than anticipated. My initial read is that the market is clearly pricing in a less aggressive Fed now, which makes sense, but the extent of the dollar's reaction is still catching my eye.
I've been keeping $XAGUSD on my watchlist, and with the dollar weakening like this, you'd typically expect to see some upside in metals. However, silver is also down over 6% at 57.541. This divergence is interesting. Is it simply a case of broader risk-off sentiment hitting everything, or is there something else at play for silver specifically? I'm curious if others are seeing this as a potential bounce opportunity for silver if the dollar continues to slide, or if there are other factors I should be considering that are keeping precious metals down despite the dollar weakness. Definitely going to be watching the follow-through on both the dollar and silver over the next few sessions before I make any moves.
I agree the dollar's dip is substantial, but I'm more cautious on silver's immediate reaction. Gold usually leads the way, and silver often follows. Need to see how gold responds first, then silver's move will likely be clearer.