USD Selloff Halts As All Eyes Turn To The IMF Event



US Treasury bond yields experienced a sharp decline which led to a weaker US dollar across the board on Wednesday as the greenback reeled from the pressure against its major rivals. On Thursday, the USD held firmly as investors eye the IMF Spring Meetings announcement by Federal Reserve Chairman Jerome Powell and European Central Bank (ECB) Christine Lagarde. On the agenda, are Europe’s revised inflation figures and April’s preliminary Consumer Confidence data. Later in the day, the US weekly Initial Jobless Claims and Philadelphia Fed Manufacturing Survey will be disclosed.To get more news about osprey fx, you can visit wikifx.com official website.

This week, the US Dollar Index /DXY) lost 0.65%, while the 10-year US T-bond yield fell 3.5%. Several comments from Fed officials affected the dollar’s ability to strengthen. Chicago Fed President Charles Evans highlighted that it is unlikely inflation will drop back to 2% in the coming year even if factors pushing the price increase would begin to dissipate.

Meanwhile, the EUR/USD gained more than 50 pips and a hawkish ECB comment pushed the pair somewhat into demand territory. Moreover, ECB policymaker Martins Kazaks said that a rate hike is likely as soon as July and that policy rates could get positive within the year.

As GBP/USD found itself on a four-day losing streak, the pair remained solidly around 1.3050 in the early European session. The USD/JPY started a downward correction after it reached a record high of 129.24. It finally seemed to consolidate near the 128 mark.