By Christopher Tahir – Senior Market Strategist at Exness
The US dollar remained near multi-year lows on Thursday, stabilising marginally as rising Treasury yields provide temporary support. Yields have firmed across the curve, with the 10-year holding above 4.26%, reflecting a reassessment of near-term monetary policy following the Federal Reserve’s decision to keep rates unchanged.
By emphasising economic resilience and easing concerns on both inflation and employment, policymakers effectively pushed back against aggressive easing expectations, supporting US rates even as the dollar struggles to regain momentum.
However, constraints remain. Investors continue to consider the risk that President Trump may appoint a future Fed chair aligned with a preference for a weaker currency. This uncertainty around policy independence limits dollar upside, in addition to global trade risks.
Attention now turns to today’s jobless claims data, where a slight uptick to around 205k is expected. A material surprise could challenge the narrative of labour market stability.