forex

US DOLLAR (DXY) DAILY PRICE AND ANALYSIS EUR/USD testing 108.00 support after hitting 109.37 on Thursday. GBP/USD prints a fresh 17-month low. USD ForecastUSD Forecast RECOMMENDED BY NICK CAWLEY Get Your Free USD Forecast Get My Guide The multi-month US dollar rally shows no sign of abating with the greenback racking up impressive gains against all of its major rivals. Further confirmation from Fed chair Jerome Powell yesterday that the US central bank will act swiftly to stamp down inflation has given the DXY another boost higher and with little in the way of resistance, the move looks likely to extend further. Fed chair Powell all but confirmed that interest rates would be hiked by 50 basis points at the May meeting – confirming market pricing – and suggested that similar-sized hikes are likely in the coming months. Mr. Powell also said that ‘there’s something in the idea of front-end loading’, underpinning the belief that the US will hike rates by multiples of 50 basis points at the next few meetings. In addition, the US central bank’s plans to reduce its bulging balance sheet will be laid out at the May meeting, tightening monetary policy further.