Pablo Piovano

The Greenback traded in a vacillating fashion on Wednesday, always against the backdrop of the unabated uncertainty surrounding the Middle East conflict, at the time when bets for Fed rate hikes continued to gather pace.

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance increased to 215K for the week ending May 23.

The National Bank of Poland (NBP) met the broad consensus among market participants and held interest rates steady and adopted a cautious tone earlier on Tuesday, saying that future data would guide policy choices but also that inflation concerns are very much alive.

The US Dollar (USD) maintains its positive performance for the third consecutive day on Wednesday, this time lifting the US Dollar Index (DXY) to the vicinity of two-month highs near 99.50 and opening the door to a potential test of the psychological 100.00 hurdle in the relatively short term.

The Bank of Canada left its policy rate unchanged at 2.25% on Wednesday, as widely expected, delivering a neutral-to-mildly dovish hold.

The Federal Reserve (Fed) left interest rates unchanged at 3.50%-3.75% on Wednesday, but the bigger surprise came from the updated economic projections and Kevin Warsh's first press conference as Fed Chair.

At the ECB Forum in Sintra, Fed Chair Kevin Warsh largely followed the script, offering little to change the market’s current view on monetary policy.

The Greenback, when tracked by the US Dollar Index (DXY), abandons the area of monthly peaks and recedes toward the 101.30 zone on turnaround Tuesday.

The US Dollar Index retreated to 101.30 as cooling oil prices and disappointing consumer data weighed on the buck ahead of the FOMC meeting.

The Fed left interest rates unchanged at 3.50%-3.75%, but the decision carried a distinctly hawkish edge as three officials voted for an immediate 25-basis-point increase.