Dollar Strengthens on Fed Official’s Hawkish Comments
U.S. Dollar Gains Momentum
The U.S. dollar saw an uptick in European trading on Thursday, driven by bullish remarks from a Federal Reserve official. The Dollar Index, tracking the greenback against a basket of currencies, rose by 0.3% to 104.320, nearing its highest level since mid-February.
Fed Governor’s Impact on Dollar
Fed Governor Christopher Waller’s comments at an Economic Club of New York event bolstered the dollar’s position. Waller’s stance on holding off rate cuts in the face of disappointing inflation data resonated with market sentiments, pushing the dollar higher.
Economic Data Impact
Market watchers are closely monitoring economic indicators, including weekly reports, fourth-quarter data, and more. The upcoming release of the Fed’s preferred inflation measure will be a key focus on Friday.
Euro and Sterling Struggle
The euro and sterling faced challenges as weak economic data weighed on them. Both currencies saw declines, with the euro slipping to a five-week low and sterling dropping after confirming a shallow recession in the UK last year.
Yen’s Upward Trajectory
The yen’s surge raised concerns about potential intervention, with Japanese authorities signaling vigilance. Speculation about currency market intervention looms as the yen continues its upward trend.
Overall, the market is dynamic, responding to various economic factors and central bank policies that shape currency movements.
