The market now sees little chance of another rate hike from the Fed. In fact, it seems that the Fed may have reached its peak, although Fed Chairman Jerome Powell did not rule out the possibility of another tightening move depending on the data. However, monetary policy is currently playing second fiddle to the market. Geopolitical risks are overshadowing everything and the Dollar remains in demand as a safe haven.

As long as the conflict does not appear to be escalating, as in the case of the announced ground offensive, the Dollar is likely to have a hard time making further gains for the time being, as it is becoming less and less supported by monetary policy.