As market participants await critical Fed testimony, the US Dollar braces for potential volatility. Economic trends indicate that discussions about inflation may shape the Dollar’s direction. Analysts seek to understand whether Powell’s viewpoints will bolster the DXY or allow for a rebound in GBP/USD and EUR/USD. Observers note that shifting sentiments around inflation and interest rates often lead to swift market reactions. Keeping abreast of comments from the Fed is crucial for traders since minor shifts in language can have major impacts. As we approach pivotal economic discussions, traders need to stay informed to navigate potential market swings effectively.