USD Strengthens as Fed's Powell Emphasizes Persistent Inflation Concerns

The US dollar index surged following the Federal Reserve's June meeting, where Chair Jerome Powell highlighted ongoing inflation pressures despite keeping rates unchanged. Powell specifically noted goods inflation moving higher, tempering market expectations for near-term rate cuts. The Fed's dot plot projections for June 2025 reinforced a hawkish stance, supporting dollar strength across major pairs. US economic data was mixed, with housing starts disappointing at 1.256 million versus 1.357 million expected, while jobless claims met forecasts at 245K. The dollar's broad-based gains accelerated during Powell's Q&A session as he emphasized the Fed's commitment to achieving its inflation target. Technical momentum suggests further dollar appreciation potential, with the DXY approaching key resistance levels. Traders should monitor upcoming inflation data releases for continuation signals in the dollar's upward trajectory.