The dollar index held above 98.8 on Thursday, inching toward its highest level in nearly two years after Federal Reserve officials indicated readiness to take more aggressive action to bring inflation under control, including a possible 50 basis point rate hike in May. San Francisco Fed President Mary Daly, noted for being more cautious about policy tightening, said that she supports a bigger rate hike if needed to combat inflation given a strong labor market. This followed similar remarks from her colleagues, including from Fed Chair Jerome Powell who opened the door for raising rates by more than 25 basis points at upcoming policy meetings to prevent inflation, which currently runs at 40-year highs, from getting entrenched. Meanwhile, the dollar was also buoyed ahead of US President Joe Biden’s meeting with NATO allies where he is expected to announce additional sanctions against Russia over its invasion of Ukraine.
Hawkish FED Announcements are limiting future rises in NASDAQ. The first resistance is 14.714 and first support level is 14.395Level.
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