Anna 
The US Dollar remains resilient against major counterparts on Thursday after experiencing significant volatility during Wednesday’s Federal Reserve (Fed) event. The Bank of England (BoE) is set to announce its monetary policy decisions later in the day. Eurostat will release the inflation report for January, and the US economic calendar includes weekly Initial Jobless Claims, Unit Labor Costs, and ISM Manufacturing PMI data.
The Fed, in its first monetary policy meeting of the year, kept the interest rate unchanged at 5.25%-5.5%, meeting expectations. Notably, the Fed dropped the language about the willingness to tighten policy further but stated that it does not expect to reduce rates until there is greater confidence that inflation is sustainably moving toward 2%.
Fed Chairman Jerome Powell, during the post-meeting press conference, indicated that almost everyone on the Committee believes it will be appropriate to reduce rates. However, he mentioned that, based on the meeting, a rate cut in March is not likely. The USD Index initially dipped below 103.00 but later regained traction, climbing above 103.50. Despite the US stock market closing negatively and the 10-year US Treasury bond yield settling below 4%, the USD Index maintained gains above 103.60.
As markets await the Bank of England’s decision and other economic indicators, including US jobless claims and manufacturing data, the US Dollar’s resilience is in focus amid ongoing global economic uncertainties.
