By Abdelaziz Albogdady, Market Research & Fintech Strategy Manager at FXEM ”
The dollar index was firm on Thursday, hovering near a two-week high as investors digested a mix of US data, recent comments from Federal Reserve members, and a busy global central bank calendar.
The dollar continues to draw support from cautious remarks from Federal Reserve members. Fed Lisa Cook signaled there is no rush to back further rate cuts, helping to anchor the dollar. Additionally, the appointment of Kevin Warsh as Fed chair fueled some caution.
Attention now turns to today’s rate decisions from the ECB and the Bank of England. Comments from the respective leaders could affect the dollar’s strength against the euro and the pound, although both central banks are expected to keep interest rates on hold.
Additionally, JOLTS and initial jobless claims will be scrutinized for indications of labor market strength. Clear signs of deterioration could revive dovish expectations and pressure both the dollar and yields, but absent that, the greenback is likely to remain supported.