US Dollar eases off session highs, awaiting Fed's Beige Book
The US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, seems to have lost some upside momentum around 99.80 despite Fed's Rosengren's statements. As of writing, the index was at 99.70, still up 0.3% on the day.
Boston Fed President Rosengren (non-voter, hawkish), said he supports a very gradual approach that begins relatively soon. Rosengren supports three more rate hikes this year, which is one more than the median Fed forecast and two more than markets predict, as reported by Reuters.
Rosengren is a known hawk and the fact that he is a non-voter may have allowed investors to ignore his comments. Additionally, the recent upsurge seen in the U.S. Treasury bond yields has come to a pause in the last hour, capping the gains of the DXY. After rising to 2.225%, the 10-year bond yield eased back to 2.21%, but it still up 1.62% on the day.
Technical outlook
The index could face the initial hurdle at 100 (psychological level) ahead of 100.50 (Apr. 13 high) and 101.20 (Apr. 7 high). On the flip side, 99.35 (yesterday's low) could be seen as the first technical support before 99 (psychological level) and 98.65 (Mar. 27 low).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
