The US dollar is seen accentuating gains on Thursday as Fed officials reiterate hawkish undertone in their speeches, reducing any near term possibility of a rate cut. The dollar index futures scaled above 105 mark and are currently quoting at 105.12, up 0.07% on the day while treasury yields were higher at 4.6%. Fed Atlanta President Bostic said that the path to 2% inflation is not assured and that the breadth of price gains is still significant. Yesterday, Minneapolis Fed President Neel Kashkari stated in an interview that the Fed should delay cutting rates until inflation significantly improves and might even hike rates if inflation fails to come down further. Investors now await the second estimate of GDP figures due later today, as well as the key US PCE inflation report on Friday for clarity on the central banks policy outlook. Among the basket currencies, EURUSD and GBPUSD came under pressure amid dollar strength and were quoting lower by around 0.15% on the day at $1.0797 and $1.2688 respectively.
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