US Dollar Rebounds from Lows as Focus Shifts to Inflation Data

The US dollar continues to strengthen as US Treasury yields rise, supported by remarks from San Francisco Federal Reserve President Mary Daly suggesting that the Federal Open Market Committee (FOMC) is not considering cutting borrowing costs. Traders are advised to closely monitor Fed Chair Powell's speech on Friday for further clarification on the monetary policy outlook. Hawkish comments endorsing higher interest rates could push US yields higher and extend the dollar's rebound, while a lack of pushback on dovish market pricing could weigh on the greenback. In terms of technical analysis, the EUR/USD may find support at 1.0890, with a potential drop towards 1.0840 if a breakdown occurs. On the other hand, a bullish scenario could see the exchange rate reach 1.0960 and potentially rally towards 1.1080. Similarly, the GBP/USD may experience a brief pause in its uptrend but is expected to remain above support at 1.2590, with a potential move towards 1.2720 and 1.2800.