The Dollar Index (DXY) has managed to trade marginally higher this Friday morning as we enter the European session. In what has been a muted Asian session, the greenback has found support from hawkish Fed speak last night. The Fed’s Mester (known hawk) and Harker both echoed similar sentiments around maintaining a restrictive monetary policy environment preferring rates above the 5% mark to quell elevated inflation in the US. Money markets tend to agree with these comments with the Fed funds futures below indicating a peak rate of 5.105% at present.
