Dollar Rally Halted by Central Bank Reassessments

The US dollar's rally has been halted by reassessments of interest rates from major central banks, including the ECB.

According to JP Morgan, the greenback was undervalued by approximately 2-4% before the FOMC meeting, based on various factors such as interest rate differentials.

The start of the rate-hiking cycle has given speculators a reason to switch from reducing long positions in the dollar to catching up with its advance, which could lead to further gains for the USD index.