On Wednesday, Fed Chair Powell indicated that the Federal Reserve was ready to speed up interest rate increases, if warranted by incoming data.
This was a reversal to what the market had expected, with most speculations regarding a possible pivot on the current monetary policy to slow down on future rate hikes.
This headline news saw the DXY strengthen significantly from the 104.60 price area, breaking beyond 105, to reach a near-term high of 105.88.
While Chair Powell's overnight testimony saw the DXY retrace briefly to retest the 105.36 support level, this move was unsustained and the price rebounded from the support.
Currently trading at the 105.65 price level, and with no major news for the US today, the DXY will likely consolidate along this range for the short term, between the 105.36 and 105.88 price levels.
This was a reversal to what the market had expected, with most speculations regarding a possible pivot on the current monetary policy to slow down on future rate hikes.
This headline news saw the DXY strengthen significantly from the 104.60 price area, breaking beyond 105, to reach a near-term high of 105.88.
While Chair Powell's overnight testimony saw the DXY retrace briefly to retest the 105.36 support level, this move was unsustained and the price rebounded from the support.
Currently trading at the 105.65 price level, and with no major news for the US today, the DXY will likely consolidate along this range for the short term, between the 105.36 and 105.88 price levels.
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