- The DXY declined to 104.20 on Tuesday.
- The US service sector continues to show robustness, making markets disregard an interest rate cut in March.
- US Treasury yields continue to rise, boosting the Greenback.
The US Dollar (USD) Index, currently trading at 104.20, has been on a downward trend due to investors cashing in their profits alongside the impact of statements from Loretta Mester, the president of the Federal Reserve Bank of Cleveland. Mester warned about the risks of doing too much in terms of tight monetary policy and how it could affect the labor market.
The US Federal Reserve’s hawkish hold, justified by a robust jobs report and continuous strong growth in Q1, made expectations for Federal Reserve (Fed) rate cuts begin to wane. This has favored the Greenback in the last few sessions. Several…
