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Dollar Index holds steady as Fed rhetoric fails to move markets

After a conditional hold from a non-voting regional Fed president, the Dollar Index traded just below 99.00 with limited session range, while US data pointed toward cooling demand and inflation pressures.

Reported · Written up by our desk · Major Pairs

A non-voting regional Federal Reserve president issued a conditional hold, linking the policy target range to continued evidence that inflation is actually declining, and the Dollar Index did not react materially, according to FXStreet.

The index traded just beneath the 99.00 level after a European morning high slightly above it, then stayed confined to a narrow band during the US session after 13:00 GMT.

FXStreet noted that the market is effectively treating Fed speeches as less actionable because several regional presidents rotated off the FOMC in January, and the four voting presidents this year have shown a pattern of dissent alongside limited changes to the vote count.

The same article said moves in pricing have been driven more by US releases than by the podium, including new home sales falling 10.5% month over month in July to an annual rate near 607K, inventory rising toward 488K units, and consumer confidence slipping to 89.4 in August as the expectations component fell to 68.2.

Latest closeDollar index 99.64 ▼0.3%

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