XE Market Analysis: Europe – May 05, 2021

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The dollar lost some upside momentum but has remained firm. The DXY dollar index edged out a two-week high at 91.43 while EUR-USD ebbed below 1.1990 for the first time since April 19th. This comes after U.S. Treasury Secretary Yellen, formerly the chair of the Fed, caught attention by stepping on Powell’s toes yesterday, saying that the Fed might have to lift rates to contain an overheating economy. She subsequently tried to walk back these remarks, though the damage was done in the sense of having catalysed the sell-off on Wall Street yesterday.