US DOLLAR EXTENDS RALLY AS MARKETS DEFY FED’S VIEW ON INTEREST-RATE CUTS

• The US Dollar jumps higher for the second day in a row. 
• Traders are challenging the Fed's dovish stance, casting doubts over its forecasts of three rate cuts for this year. 
• The US Dollar Index snaps firmly above 104.00 and breaks substantial support levels. 

The US Dollar (USD) is basking in the glory of re-founded belief from traders. Whereas last year markets were challenging the US Federal Reserve (Fed) by pricing in more rate cuts than what the dot plot suggested, investors are now defying the US central bank in the other direction. Markets are expanding their positions in the Greenback with the idea that the Fed will not cut interest rates three times as it projected on Wednesday, but at most two,  as economic data signals the US economy is still growing at a healthy pace. 

On the economic data front, there is no top data expected to be released this Friday. However, markets will head into the weekend with three US Federal Reserve speakers lined up. First and foremost will be the Fed Chairman Jerome Powell, who will deliver a speech at around 13:00 GMT.