Dollar index is struggling to get a strong follow-through rise. The resistance at 106 mentioned last week has held very well. The index made a high of 105.88 and has come off sharply to close the week on a flat note. The US Treasury yields fell sharply last week as the sentiment in the market turned highly risk-averse after the Silicon Valley Bank collapse. This unexpected development in the US has shifted the market expectations on the rate hikes.
The US Federal Reserve Chairman, Jerome Powell last week said that if the data warrants, then faster pace of rate hikes will still be possible in the future. This had raised the hopes that there could be a 50-basis point (bps) rate hike from the Fed this month. But following the Silicon Valley Bank collapse, the market now expects that the Fed could slow down and go with just a 25-bps hike.
Under this circumstance, the key Consumer Price Index (CPI) data…
