USD Strengthens as Fed's Logan Pushes Back Against Rate Cut Expectations

The US dollar found support on Thursday after Dallas Federal Reserve President Lori Logan reinforced her hawkish stance, stating that the Fed should not provide forward guidance that implies monetary easing is imminent. Logan, who dissented at this week's FOMC meeting, argued that current economic conditions do not warrant signaling rate cuts to the market. Her comments pushed USD/JPY and EUR/USD in the dollar's favor as traders recalibrated rate cut expectations for the remainder of 2026. The Fed funds futures market saw a modest repricing, with the probability of a June cut declining by approximately 5 basis points following her remarks. For EUR/USD, immediate support sits near the 1.0800 level, while resistance holds around 1.0870. The divergence within the FOMC highlights ongoing uncertainty about the policy path, and traders should monitor upcoming inflation and employment data for further clarity on when easing may begin. Logan's dissent underscores that the bar for cuts remains high among several Fed officials.