Anna 
The U.S. dollar remained relatively steady on Tuesday, maintaining a slight upward drift that began earlier this week. This movement follows comments from several Federal Reserve officials advocating for continued caution in monetary policy, despite last week’s data indicating a reduction in consumer price pressures for April.
On Monday, Vice Chair Philip Jefferson emphasized that it is too early to determine if the slowdown in inflation is “long-lasting.” Similarly, Vice Chair Michael Barr remarked that the current restrictive policy needs more time to show its full effects, dampening expectations for early interest rate cuts.
Tuesday will see additional insights from Federal Reserve officials, with Barr speaking again, alongside FOMC members Thomas Barkin, John Williams, and Raphael Bostic.
Analysts at ING noted, “Expectations for total Fed easing by year-end have been modestly scaled back to 42 basis points, but we suspect the next major move in OIS pricing will not come before the 31 May US core PCE.”
The analysts added, “Our view remains neutral on the dollar in the coming days, although risks appear skewed slightly to the upside.”
