The DXY Index is trading neutrally around the 103.80 level with minor day-to-day changes.
Durable Goods and Confidence data from the US came in weaker than expected.
The Federal Reserve maintains a hawkish stance as reflected in its reluctance to slash rates, which may limit the downside.
The US Dollar Index (DXY) is currently trading neutrally near the 103.80 mark. The Federal Reserve (Fed) has illustrated its wariness to hastily reduce rates, which has led to a diminished possibility of such cuts in March, while odds in May have decreased to approximately 20%. On the data front, weak mid-tier data reported during the European session is pushing the Greenback down.
If the United States economy continues to show weakness, markets may readjust their expectations, but as for now, the most likely scenario is that the Fed will start cutting in June, which seems to provide support to the USD. Personal Consumption Expenditures (PCE) figures from January and Gross Domestic Product (GDP) revisions from Q4 may change those bets.
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