FOREX U.S. dollar flat to moderately higher, weak outlook intact on Fed outlook

Dollar outlook remains tilted to downside, analysts sayRate futures price in rate cuts by end-2023NY Fed’s Williams says peak rate likely between 5%-5.25%Investors parsing hawkish ECB comments

NEW YORK, Feb 8 (Reuters) – The dollar was little changed to marginally higher on Wednesday as investors paused selling the greenback a day after Federal Reserve Chair Jerome Powell did not significantly change his interest rate outlook despite a strong U.S. jobs report last week.

The greenback’s outlook, however, remained tilted to the downside as the Fed nears the end of its tightening cycle and the markets price in rate cuts by the end of the year, analysts said.

In a question-and-answer session before the Economic Club of Washington on Tuesday, Powell said interest rates might need to move higher than expected if the U.S. economy remains strong, but reiterated he felt a process of “disinflation” is underway.


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