USD can edge higher because we don’t expect the Fed will deliver 75 bps of rate cuts this year. 

The US economic growth outlook is encouraging, financial market conditions are very loose, and the February PCE deflator is expected to remain too sticky for the Fed to cut any time soon. 

Interestingly, Atlanta Fed President Raphael Bostic (2024 voter) pointed out on Friday he now projects just one interest rate cut ‘later in the year’, instead of two, as he’s less confident on the trajectory of US inflation.