• US Dollar faces pressure post the release of disappointing Initial Jobless Claims, amplifying fears regarding the US labor market's health. 
• Markets look toward ongoing data for clearer direction, the Fed's hawkish stance could change with continued releases of soft data.
• All eyes are now on next week’s CPI data.

The US Dollar Index (DXY) is trading at 105.35, slightly down. Despite signals of persistently high inflation acknowledged by Federal Reserve (Fed) Chair Jerome Powell and a recent hawkish stance from the Fed, the Dollar seems to be under mild downward pressure on Thursday due to the report of weak Initial Jobless Claims figures

While the US economy is grappling with sustained inflation and mixed signals from its economic activity, Fed Chair Jerome Powell hinted that cuts might be delayed. As for now, the recent weak Nonfarm Payrolls report did not convince Fed officials, who remain hawkish. The USD dynamics will be set by the incoming data and how the central bank’s members take it.