The dollar index was at the 98 mark on Wednesday, halting the slide that tested three-year lows yesterday as markets continued to assess the monetary policy outlook for the Federal Reserve.

In his first testimony before Congress, Chairman Powell noted that the uncertain economic backdrop drove FOMC members to wait for clarity on trade policy before committing to a specific rate path.

Still, Powell noted that the lack of tariffs favor the continuation of a disinflationary outlook, favoring rate cuts should the White House refrain from reintroducing tariffs on the July 9th deadline.

In the meantime, oil and LNG tankers continued to navigate in the Strait of Hormuz despite the brief escalation of the conflict between Iran and Israel, triggering a plunge in energy prices and magnifying bets of lower inflation stateside.

Externally, economic data continued to favor rate cuts by G10 monetary authorities, also preventing the further depreciation of the greenback.

Source: Trading Economics