The US Dollar Index is expected to fall below 104.70 as risk appetite strengthens and rates approach 3.30 percent
The DXY has seen a strong decline at the outset due to lower yields and disappointing Retail Sales data. The DXY has experienced extreme volatility as a result of a rate rise of 75 basis points. The Fed believes that an increase in the unemployment rate will bring about price stability.

After a flat opening, the US dollar index (DXY) has seen a sharp decline and is projected to prolong its losses after falling below Wednesday's low of 104.66. The DXY became particularly volatile following the Federal Reserve's (Fed) announcement of a 75 basis point rate rise (bps). Although the long-term expectation was 50 basis points, a higher US inflation reading of 8.6% announced last week increased the likelihood of a massive rate hike. Extreme selling pressure was exerted on the asset by a sharp decline in US Treasury rates. Yields on 10-year US Treasuries fell 5.50 percent on Wednesday. At the time of publication, benchmark yields are 3.29 percent. After nearly 28 years, the Fed has announced a rate raise of 75 basis points.
Powell's press conference following the announcement of monetary policy Fed chair Jerome Powell was observed to be appreciative of the robust and well-positioned economic growth, which has enabled the Fed to mandate a massive rate rise. Additionally, the US economy's consistent employment growth has encouraged the Fed to take a strong stance on interest rates. An economy's excessive policy tightening reduces growth projections. The Fed believes that a drop in inflation rates to approximately 2 percent while maintaining the unemployment rate at 4.1% will constitute a Fed success.
Wednesday's release of the US Retail Sales data was overshadowed by the Fed's decision about interest rates. The monthly Retail Sales went negative, arriving at -0.3 percent, significantly lower than forecasts and the previous reading of 0.2% and 0.7%, respectively. While the Retail Sales Control group was reported at 0%, which was below both estimates and the previous print of 0.5%.
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