FX.co ★ Dollar Extends Gains as Fed Stays in Focus

The dollar index surpassed 97.7 on Monday, marking its fourth consecutive session of gains as investors awaited new insights from Federal Reserve officials and a crucial US inflation report scheduled for this week. Federal Reserve Chair Jerome Powell, along with approximately nine other policymakers, are set to address the public, with markets paying close attention to their guidance on future interest rate moves. Additionally, Fed Governor Stephen Miran plans to present a thorough defense of his independent stance after he opposed last week's decision, advocating instead for a more significant 50 basis point rate cut. The upcoming PCE price index report on Friday, the central bank's preferred gauge of inflation, is anticipated to indicate mild price pressures. Last week, the Federal Reserve enacted a widely expected 0.25 percentage point rate cut, its first since December, and projected two additional cuts within the year. The dollar strengthened across the board, recording notable gains against the euro, yen, and New Zealand dollar.