US Dollar Edges Higher Ahead of FOMC and Powell’s Testimony
Arslan Butt • 1 min read
The US dollar continues to edge higher, buoyed by the strong NFP report release of last week which have dented the sentiments for a rate cut by the Fed. At the time of writing, the US dollar index DXY is trading at 97.51.
US bond yields have also started climbing higher on the improved sentiment in markets. Now, all eyes turn to the FOMC meeting minutes and clues in Fed Chair Powell’s congressional testimony over the next two days.
If Powell’s comments come out sounding neutral or a little hawkish, it could be taken as a sign that Fed may delay or limit future rate cut plans. This would help boost the dollar further.