- The US Dollar appreciates throughout the day and ekes out big gains.
- Traders see the Fed confirming market projections on cutting cycle for 2025.
- The US Dollar Index breaks out of its 103.00 – 104.00 range for the first time in weeks.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, rallies above 104.00 on Thursday after the weekly jobcless claims data. Borrowing costs were kept unchanged overnight by the Federal Reserve (Fed), and projected two interest rate cuts for 2025. During Wednesday’s Fed meeting, Chairman Jerome Powell said that any tariff-driven bump in inflation will be “transitory.” However, he added later that it will be very challenging to say with confidence how much inflation stems from tariffs versus other factors. He also said recession odds have moved up, though are not high, Bloomberg reports.
Meanwhile US yields…
