US Dollar tallied weekly gains on hawkish Fed speakers

• Notable monetary divergence between Fed, G10 peers keeps USD afloat.
• Markets await further economic reports for insights into the US economy’s health for potential adjustments to Fed expectations.
• Next week’s highlight will be April’s US CPI.

The US Dollar Index (DXY) is currently trading around the 105.35 mark, posting mild gains on Friday near the end of the trading week. The Greenback holds its ground but seems stuck as markets await drivers to continue placing their bets on the next Federal Reserve (Fed) decisions.

The US economy remains on shaky ground, and markets are expecting signs of decelerating inflation, which gives the Fed confidence to start cutting. In the meantime, the bank’s officials remain hawkish.