FXStreet reports that analysts at Westpac discusses US Dollar Index prospects.

“Fed Chair Powell resoundingly beat back growing doubts that the Fed could maintain a dovish track as growth rebounds. That should anchor the front end and leave the DXY wounded near-term. DXY could easily trade sub-91 in the coming days. 

“A lack of front-end yield support for the DXY has been in place since the covid crash and it’s not entirely obvious that the DXY is about to slide all the way back to fresh lows sub-89. Yield spread support continues to build in the DXY’s favour at the back-end of the curve.”

“DXY likely trades a 90-93 range in coming weeks, the Fed’s dovish commitment clashing with a resounding US activity rebound, leaving DXY contained for now.”