Dollar Lacks Clear Direction
The dollar index hovered around 104.2 on Wednesday, showing little movement as investors weighed trade-related and broader economic uncertainties in the US. Markets remained cautious ahead of President Donald Trump’s reciprocal tariffs, set to take effect next week, though the scope of implementation remains unclear.
Meanwhile, data released on Tuesday revealed a decline in US consumer confidence, with future expectations hitting a 12-year low. Investors now turn their attention to comments from Federal Reserve officials later today for insights into the monetary policy outlook.
Additionally, the focus remains on Friday’s PCE price index report, the Fed’s preferred inflation gauge. The dollar traded flat against most major currencies, but gained some ground versus the Japanese yen.
Source : Trading Economics