US Dollar Momentum Softens as US Data Cools – MUFG

According to MUFG analyst Lee Hardman, the US Dollar is poised for a second consecutive week of gains, but the upward momentum is fading. The slowdown follows softer-than-expected US GDP and PCE data, which have tempered the recent bullish bias.

Additionally, dovish remarks from New York Federal Reserve President John Williams have contributed to the reversal of the hawkish outlook that had supported the dollar. The combination of weaker economic data and a more cautious Fed tone suggests the greenback may struggle to extend its recent rally.