DXY Futures Snap Recent Rally; 105 Mark Stays Intact

The dollar index futures slipped back to a week low on Thursday, unable to hold on to the recent streak of gains towards a 6-month high. Currently, the dollar index futures are quoting at 105.68, down 0.09% on the day but staying intact well above the crucial 105 mark. The greenback is losing sheen after a five day rally tracking rising US benchmark treasury yields at around 4.56% amid hawkish bets on Fed action. Federal Reserve Chair Powell was seen hawkish on Tuesday and warned that there is little progress on inflation reducing possibility of a near term rate cut. However, DXY futures failed to hold on to higher levels as global risk appetite seemingly improved. Respite from Middle East tensions also reduced safe haven demand for the global reserve currency. Investors now await comments from FOMC members due later today for further cues on interest rates. Among the basket currencies, EURUSD and GBPUSD recovered slightly to $1.0713 and $1.2481 respectively.

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