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The dollar pauses after a climb
The US dollar is losing 0.2% since the start of the day on Wednesday against a basket of major currencies, signalling traders' eagerness to lock in some profits after a 2.5% rally over the previous seven days.

Interestingly, dollar fatigue was evident shortly after Powell's admission that inflation was on a higher trajectory than the central bank expected. The Fed is so far following market expectations, which have changed impressively since 8 March, when a pro-inflationary jobs report turned the dollar higher. The dollar's upward momentum got a fresh boost after last week's inflation report, as it was "bought on rumours" of a change in Fed sentiment. In this context, Powell's words are seen as "selling the fact".

The dollar pauses after a climb
The US dollar is losing 0.2% since the start of the day on Wednesday against a basket of major currencies, signalling traders' eagerness to lock in some profits after a 2.5% rally over the previous seven days.

Interestingly, dollar fatigue was evident shortly after Powell's admission that inflation was on a higher trajectory than the central bank expected. The Fed is so far following market expectations, which have changed impressively since 8 March, when a pro-inflationary jobs report turned the dollar higher. The dollar's upward momentum got a fresh boost after last week's inflation report, as it was "bought on rumours" of a change in Fed sentiment. In this context, Powell's words are seen as "selling the fact".


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