Dollar Index Maintains Tight Trajectory, Holds Around 101 Mark

Published on Jul 26, 2023 12:06

The US dollar index is consolidating just under its two week high, maintaining a tight trajectory around 101 mark as market focuses fully on the US Fed monetary policy decision due tonight. The index is well off its 15 month low now but the further journey will depend upon what the Fed delivers an also on which side the US Fed chair Jerome Powell tilts in his post policy comments. There has been a surge in the US 10 year treasury yields over last few days but it still remains well the 4% threshold and is pointing towards the Fed maintaining its cautious undertone in the coming meet. The latest spike in crude oil prices and stable consumer confidence could still weigh on the policy paradigm and may keep the Fed from announcing a clear cut end to its elongated monetary tightening campaign.