FX.co ★ Dollar Lacks Clear Direction

On Wednesday, the dollar index remained steady around 104.2, as investors navigated through trade-related and broader economic uncertainties within the United States. Markets maintained a cautious stance in anticipation of President Donald Trump’s reciprocal tariffs, scheduled to be implemented next week, although the extent of their application is still uncertain. Meanwhile, Tuesday’s data highlighted a decrease in US consumer confidence, with future expectations reaching a 12-year low. Investors are now focusing on comments from Federal Reserve officials expected later today for potential insights into the future direction of monetary policy. Additionally, attention is geared towards Friday’s PCE price index report, considered the Federal Reserve’s preferred measure of inflation. While the dollar showed little change against most major currencies, it did gain some ground against the Japanese yen.