US Dollar Index to stall around the 105 area – Scotiabank

FXStreet Insights Team FXStreet

The FOMC delivered a 75 bps hike. The US Dollar Index (DXY) snapped a five-day winning streak on Wednesday following the Federal Reserve's policy announcements. Economists at Scotiabank expect DXY to struggle to surpass the 105 area.

USD may struggle to improve

“For now, with the Fed looking fully priced and spreads not making new ground in the USD’s favour, the USD may struggle to improve.”

“Supportive cash bond spreads suggest the USD may not fall too far for now but unless yield differentials can make new highs, we still rather think the DXY will struggle to better the 105 area, where it peaked in May.”

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FXStreet Insights Team

FXStreet

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EUR/USD remains offered near 1.1950

EUR/USD comes under pressure near the 1.1950 zone following the closing bell on Wall Street on Wednesday. The Greenback’s rebound prompted spot to face some correction while investors continue to assess the latest FOMC event. On Thursday, the focus of attention will be on the weekly US labour market data and Factory Orders.