US DOLLAR GIVES UP GAINS OF ROBUST GDP AND LABOR MARKET FIGURES

• The Q4 US GDP was revised higher to 3.4%, while Initial Jobless Claims came strong.
• The March Chicago PMI came in lower than expected.
• US Treasury yields stand mixed and limit the upside for the USD.

The US Dollar Index (DXY) initially soared to 104.70 but then stabilized at 104.50. On the positive side, Gross Domestic Product (GDP) revision and strong weekly Initial Jobless Claims figures from the US benefited the Greenback. But the weaker-than-expected Chicago PMI seems to have brought down the USD’s momentum.

The US economy appears steady with the Federal Reserve’s (Fed) stance treading a cautious path. Despite upward revisions in inflation projections, the Fed, under Powell's guidance, refrains from overreacting to short-term spikes in inflation. The speculated start of an easing cycle in June remains dependent on incoming data.