After several consecutive sessions of losses, the Dollar Index is just about in the green in early Thursday trading. As many had predicted the Fed kept the dovish tone that has marked its stance since the beginning of the coronavirus crisis; however, Jerome Powell’s gloominess was one or two notches more sombre than expected. The Chair of the American central bank painted a grim picture of the economy and warned of more hard times ahead, throwing a bucket of cold water over what was perhaps excessive optimism on the part of some investors.
In the aftermath market sentiment appears to have turned and risk appetite diminished, with investors once again seeking safe havens, which of course benefits the Dollar.
