• US Dollar Index retreats to 106.50 and continues hitting a barrier near 107.00.
• Dollar weakens on Fed's Williams hinting at inflation cooling and rate reduction.
• Fed officials remain cautious amid persistent inflation concerns and uncertainty about future rate decisions.
• Mid-tier data from the US came in mixed on Thursday.

In Thursday's session, the US Dollar Index (DXY) flattens after Fed's Williams indicated a potential cooling of inflation and a subsequent decline in interest rates. On the data front, the data for Jobless Claims came in below expectations, while Manufacturing data raised concerns among investors. The DXY hovers around 106.50, indicating a possible move to find support for a rebound.

The DXY maintains an overall bullish momentum, supported by strong economic data and a less dovish Federal Reserve (Fed) stance. Its upward trajectory is driven by hawkish rhetoric, risk-off sentiment and geopolitical tensions. The uptrend is intact with limited expectations of aggressive Fed easing.