Powell’s words can determine whether USD Index will end the quarter above or below the 102.00 mark – ING

Fed Chair Powell starts two days of Congress testimony today. A successful hawkish message could give the Dollar some support into the next key releases, economists at ING report.

USD set to remain overwhelmingly more sensitive to data

A successful rate-cut pushback this week by Powell can offer the Dollar some support in the near term, but the as market pricing remains un-anchored from the Fed’s Dot Plot projections for the next rate hikes. 

Still, the first week of July is when we’ll get the most important set of data releases in the US, so Powell’s words can determine whether DXY will end the quarter above or below the 102.00 mark.