The US Dollar (USD) remains under pressure on Monday, with DXY hovering around 103.95, struggling to find traction after last week's steep decline. Federal Reserve (Fed) Chair Jerome Powell's latest remarks on Friday reassured markets that the central bank sees no urgent need to adjust policy at the moment, though economic uncertainties are growing. Meanwhile, the Nasdaq is facing heavy market losses, down 3.3%, as investors remain cautious ahead of key United States (US) inflation data due midweek.
Fed in focus as CPI looms
Market participants are bracing for the release of February's Consumer Price Index (CPI) on Wednesday, expected to provide key insights into inflation trends.
The Federal Reserve enters its blackout period ahead of the March 19 meeting, limiting central bank commentary for the week.
Fed Chair Jerome Powell reiterated on Friday that the Fed remains patient and does not see an urgent need to act, preferring to wait for additional economic data before making any policy changes.
US equities face a sharp correction, with the Nasdaq leading losses, down 3.3%.
CME FedWatch Tool indicates a majority expectation for rates to remain at current levels in May, while June rate cut expectations have risen significantly.
Ahead of the blackout media period, the Fed's sentiment index on the daily chart has fallen towards neutral ground, which could also explain the USD's decline.

Source: Fxstreet