• The index adds to Thursday’s rebound and retests 102.70.
• Further Fed tightening supports the greenback post-Powell.
• Advanced PMIs, Fedspeak next of note in the US docket.

The greenback, when tracked by the USD Index (DXY), gathers extra pace and revisits the vicinity of weekly peaks near 102.70.

USD Index looks at data, Fedspeak

The index extends the optimism in the second half of the week on the back of reinvigorated speculation of extra tightening by the Federal Reserve as well as other major central banks, while recession fears continue to run high.

Indeed, and following Jerome Powell’s semiannual testimonies earlier in the week, inflation pressures are still running high and there is a long way to go in the process of bringing inflation back down to 2%. Powell suggested that the Fed may need to take additional action in the form of more rate hikes, or at the very least, hold rates steady. However, he reassured lawmakers that the Fed's policy moves would continue to evolve as inflation approached the central bank's target.

Later in the NA session, flash Manufacturing and Services PMIs are due for the month of June along with speeches by St. Louis Fed J. Bullard (2025 voter, hawk), Atlanta fed R. Bostic (2024 voter, hawk) and Cleveland Fed L. Mester (2024 voter, hawkish).