DXY: Dollar Rebounds After Fed Minutes Show Officials Divided Over Sticky Inflation

Markets digested latest news from the Federal Reserve and figured the dollar is a good hideout in uncertain times.

• The dollar index DXY gained strength Wednesday after the latest insights from the Federal Reserve showed a divided stance by the committee over the progress made on inflation. At least two officials said they’re willing to consider interest-rate hikes in efforts to stamp out stubborn inflation. Previously, Fed policymakers had communicated they’re looking to slash interest rates three times this year.
• The fresh yet gloomy outlook rattled the trading and investing landscape and the looming uncertainty sent market participants to the safety of the greenback. The dollar added about 0.5% to its valuation against a basket of six rival currencies. The greenback’s index jumped from 104.50 to 105.00 and remained well-bid early Thursday as the forex space is still trying to assess the way forward.
• The American currency has been in a steady upside trend for the past week. Over this time span, it has jumped about 1% in a rebound move from the 100-day moving average to the 50-day moving average. Along the way, it crossed the long-term trend indicator, the 200-day moving average, potentially suggesting a bullish momentum taking shape.