US Dollar Gains Hinge on Upcoming Economic Data

The US Dollar (USD) has seen a slight increase in value against several major currencies on Monday, trading at near 100.30 according to the US Dollar Index (DXY). The DXY tracks the Greenback's value against six major currencies.

Experts agree that further gains for the USD hinge on upcoming economic data and not necessarily hawkish Federal Reserve prospects. According to the CME FedWatch tool, there is an 88% chance of at least one more interest rate hike this year, with 16 out of 18 policymakers projecting a rate increase.

Analysts at HSBC note that the USD strengthened following the decision but expects further gains to be constrained. They believe the market's attention will focus on whether incoming data validate the final projected increase this year, rather than expecting a major repricing of rate expectations or the USD.