Anna 
On Tuesday, the U.S. dollar made slight gains against the euro as Federal Reserve policymakers emphasized the importance of waiting for further evidence of sustained inflation before considering interest rate adjustments.
Ahead of the upcoming U.S. Memorial Day holiday next week, the greenback remained relatively stable against other currencies.
Karl Schamotta, Chief Market Strategist at Corpay in Toronto, noted the narrowing trading ranges across currency markets this week, attributing the dollar’s resilience to consistent messages from Fed officials regarding the potential for prolonged high interest rates.
Fed Governor Christopher Waller expressed the need for continued good inflation data over the next few months before supporting a change in monetary policy stance. Despite reassurance from Waller regarding low probabilities of rate hikes, Atlanta Fed Chair Raphael Bostic cautioned against swift rate cuts, highlighting the importance of avoiding excessive monetary easing.
Helen Given, an FX trader at Monex USA in Washington, observed that Fed speakers have largely reiterated expected sentiments, suggesting a relatively quiet week unless there are surprises in the Federal Open Market Committee (FOMC) minutes.
The euro edged 0.05% lower to $1.0852, while attention turned to Thursday’s data releases from the European Central Bank and the euro zone Purchasing Managers’ Index for insights into the region’s monetary trajectory.
Meanwhile, the dollar slipped marginally against the Japanese yen to 156.20, with the pair trading within narrow ranges amid concerns about potential currency interventions by Japanese authorities.
In the cryptocurrency market, ether saw significant gains, marking its largest two-day increase in nearly two years, while bitcoin approached its record high amidst speculation about U.S. spot exchange-traded fund applications tracking the digital assets. Ether surged 6.5% to $3,728.70, while bitcoin climbed above $70,000, reaching $69,707, as investors eyed potential milestones in the crypto space.
