USD weakens after Fed's Bowman and Barkin remarks

The US dollar weakened sharply after the start of the North America session and fresh hawkish comments from Fed's Bowman. 

Key highlights:

• We need to continue rate hikes until we see more progress.

• We are not seeing what we need to see in terms of inflation, and the numbers are erratic.

• The recent numbers are not consistent with us bringing down inflation to our goal.

• The cost and risk of continuing to raise the federal funds rate is necessary.

•  I thought the recent moderation in inflation meant we were on the verge of disinflation; however, the most recent data has been 'surprising.'

• Recent data indicates we have yet to be effective and we need to raise rates until we reach a sufficiently restrictive level

• Your guess is as good as mine as to what happens next in the economy.

Fed's Barkin also presented his views regarding policy na deconomy:

• I support the 25 basis point hike as a flexible way to respond to data.

•  I feel that the United States is making "slow progress" on inflation.

• Not taking signal from jobs & retail sales due to seasonal adjustments

• Controlling inflation will necessitate more rate hikes, the number of which will have to be seen

• There are absolutely segments of the economy where inflation is slowing, while others, such as food and utilities, are not.

USDIDX - the dollar index completely erased all of early gains and pulled back to 104 mark. If sellers manage to uphold control, a downward impulse may be launched towards key support at 103.50, which is marked with previous price reactions, 50 SMA (green line) and upper limit of the 1:1 structure.Source: Station5