Fed Speeches, Labor Data May Decide Dollar's Next Move

The US dollar has remained resilient despite a recent drop in inflation expectations, which suggests that long-term Treasury yields are playing a bigger role in its movement than Fed decisions.

The Federal Reserve's calendar is crowded on Thursday with several speeches from officials, including Philip Jefferson, who will focus on the US economy and monetary policy. This event could give markets insight into whether Wednesday's inflation report has altered the Fed's thinking.

A softer labor market would change the calculation for hawkish policy, making it harder to justify another near-term hike. If the labor numbers weaken materially, the justification for a rate hike would become considerably harder to defend.