EUR/USD: Dollar Snaps 3-day Gain After Powell Hints at Fed Rate Hike Pause

Greenback bulls didn’t get special treatment after the Fed chair indicated central bankers may have peaked their hiking efforts.

• The EURUSD pair closed to the upside on Friday, snapping a three-day streak of gains for the buck. The kicker: Federal Reserve Chair Jay Powell said the US central bank may not have to bump rates for much longer to tamp down the pace of consumer price inflation.
• In that context, euro buyers sparked the momentum and uplifted the EUR/USD to a closing rate of $1.0805. Previously in the day, the currency pair slipped to a 3-month low of $1.0759. What’s more, the dollar fell for the session against other major peers, including the British pound and the Japanese yen.
• Later in the week – on Friday – traders will get a glimpse into the latest inflation-reducing efforts from the Fed. The US will release its core PCE index, the Fed’s preferred measure of inflation, expected to show April's PCE inflation stayed flat at 0.3% on a monthly basis.