The dollar index steadied near the 96 level on Monday, as traders await December US inflation data due later this week to guide the outlook for monetary policy. Markets also expect further hawkish commentary from Federal Reserve chair Jerome Powell as he testifies before the Senate this week, along with governor Lael Brainard, regarding their nominations.
Meanwhile, the index dropped half a percent in the previous session as the December jobs report missed expectations. However, the case for monetary tightening remained intact following hawkish minutes from the Fed’s December meeting, which indicated the central bank could reduce its balance sheet in addition to hiking interest rates.
Meanwhile, the index dropped half a percent in the previous session as the December jobs report missed expectations. However, the case for monetary tightening remained intact following hawkish minutes from the Fed’s December meeting, which indicated the central bank could reduce its balance sheet in addition to hiking interest rates.