The US dollar ran out of its range

The US dollar has overtaken its trading line from the past nine weeks to a basket of currencies.
Nevertheless, green money recorded its best weekly performance since November 2016.
For the week, the dollar index added 1.41%, ending at 91.343 points.
The main catalyst behind the rise of the dollar was the rise in interest rates on 10-year US bonds. They passed the 3% levels for the first time in more than four years. Investors have shrunk their positions in US bonds as a result of fears about rising inflation and the prospects for further interest rates.
In the rest of the news, consumer confidence rose to 128.7 points, exceeding analysts' average expectations, while orders on durable goods grew to 2.6% or against the previous reporting period.
The US GDP also turned out to be above average expectations at 2.3%. Investors, however, continue to worry about the poor performance of consumer spending.
Another major reason for the appreciation of the US dollar against other major currencies was the difference in the Fed's expected policy and other banks around the world that would most likely not be as aggressive to interest rates.

Wall Street continues to believe Trump on tax relief

Fed Chairman Janet Yellen dismissed the possibility the central bank to respond with increases in interest rates at each change of tax and spending plans of President Donald Trump. She stated that such changes will be made only if based on demand and inflation targets are under threat.

Fed Chairman in Boston Eric Rosengren said the central bank may need to raise interest rates more aggressively than predicted three changes for this year. He added that he expects the least implementation of the forecasts from December, which were for three increases in interest rates in each of the next three years. According to Rosengren GDP will be higher as unemployment has fallen below equilibrium levels.

Philadelphia Fed Chairman Patrick Harker reiterated that he expects the Fed to continue with interest rate hikes. According to him, there will be three changes this year. When achieved targets for employment and inflation are almost reached, the question that will excite the Fed will continuing of the economic growth.

Bond yields in the US increased again over the entire curve because of the good economic data and speeches by Fed officials that increased bets on markets raise rates in March. Yields on 10-year bonds is now near the highest levels of close of 2017.