The DXY index bottomed at weekly lows and managed to trim Wednesday’s losses
The Fed's stance seems slightly dovish, unmistakably resisting overreaction to two months of hot inflation.
S&P PMIs came in mixed, Jobless Claims figures came in stronger than expected.
The US Dollar Index (DXY) is currently trading at 103.80, marking a 0.50% increase, almost trimming all of Wednesday’s losses. The Greenback gained ground after mixed S&P preliminary PMIs from March and strong weekly Jobless Claims.
The overriding consensus is a start to an easing cycle in June and the timing of the next cut will be dictated by incoming data. With recent hot inflation figures, the Fed revised its inflation projections higher. However, Jerome Powell confirmed there will be no overreaction from the bank. This consideration pushed the Fed's stance more dovish, implying a less aggressive approach toward rates. The Dot Plot showed that the median rate prediction by the end of this year remains at 4.6%.
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