There is still room for the weakening of the dollar in the market, but what happened this week has slowed down the process. Holding meetings to determine bank interest rates in Switzerland and England and Powell's testimony in Congress have all made the market cautious.
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The Dollar Index continues its downward trend.
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Federal Reserve Chair Jerome Powell said in his testimony to Congress that further interest rate rises are likely ahead if the economy maintains its current trajectory. Meanwhile, the Bank of England delivered a larger-than-expected 50 basis point rate hike on Thursday, stoking fears of an economic slowdown in the UK. The Norges Bank and the Swiss National Bank also raised rates by 50 bps and 25 bps on Thursday, respectively, while signaling further tightening. On the macro front, weekly claims in the US remained at a 20-month high last week, an early signal of a potential softening in the labor market.