What a Stalled U.S. Dollar Means for EUR/USD and EUR/JPY

The U.S. dollar index is flat after Fed, ECB and Bank of Japan meetings, failing to rally despite rising inflation and growth. Matt Simpson, StoneX Media Market Analyst, breaks down why the dollar has stalled, what record euro short positioning means for EUR/USD, and how a more hawkish Bank of Japan is feeding into USD/JPY and EUR/JPY. Large speculators hold near-record short exposure to the euro, yet EUR/USD has held above its May low and formed a double bottom. The Bank of Japan held rates and raised its inflation forecasts, and USD/JPY has moved lower as markets look toward a possible December hike. EUR/JPY remains inside a long-running falling wedge, where each sell-off has been less impressive than the last. On the weekly chart, the dollar index is on track for a shooting star candle, a pattern that can mark a lower high and a potential key reversal. 00:00 - Dollar Index Shooting Star 00:21 - Central Banks Fail to Lift USD 00:58 - Record EUR/USD Shorts Pile Up 02:03 - Dollar Exposed to Weak Data 02:50 - BOJ Leans Hawkish on USD/JPY 03:38 - EUR/JPY Wedge vs. Election Gap Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_matt_simpson&utm_content=share Like and subscribe for more financial market insights. #Forex #StoneX #MattSimpson #DXY --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social