Dollar bulls are back with a vengeance as investors rediscover the America first trade - Cryptopolitan

Crypto Insight Summary: * The dollar gained as investors returned to US assets. * Strong jobs and inflation data reduced expectations for rate cuts. * Markets now see a high chance of a Federal Reserve rate hike. Commodity Futures Trading Commission data showed bullish dollar positions recorded their biggest weekly increase since 2018 and reached the highest level in more than a year. Analysts at JPMorgan Chase (NYSE: JPM) linked the buying to renewed faith in “US exceptionalism,” whatever that may even mean in 2026. The [US and Israeli war in Iran](https://www.cryptopolitan.com/ecb-boj-hikes-signal-end-of-easy-money-era/) first gave the dollar an extra push, as the currency gained more than 2% against a group of major peers. Traders believed the United States could deal with higher fuel costs more easily than economies that now depend more on imported energy. Oil is now trading for less than $80 per barrel, and investors have shifted their focus back to domestic US economic indicators. But as you can see, neither call held up, because American employers added 172,000 jobs in May, more than twice the figure Wall Street had expected, while core inflation, which leaves out food and energy, rose from 2.8% in April to 2.9% in May. The markets are [expecting](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html) a rise of 0.25% by March next year, and money market rates suggest that the probability of a rise this year is close to 80%. Crypto Insight Analysis: Direction: Bearish BTC / Bearish ETH / Bearish ALT Impact: Major Impact Horizon: Short-term (1-3 days) Reasoning: Strong dollar and hawkish Fed outlook reduce risk appetite, pressuring crypto markets.