Looking ahead, the broad USD is likely to remain determined by the interplay of risk appetite and rates. For now, the USD appears to be able to find a floor in the recent ‘risk-on’ environment.

Relative rates may offer some support to the USD if other central banks show more dovish momentum. The most recent example was from the BoE’s 21 March decision. The MPC members who voted for a hike in February decided to join the majority in March to keep the policy rate unchanged at 5.25%. With the BoE inching towards easing and cutting at least as much as its peers, the GBP will likely face downward pressures.