US Dollar meets again with gains on quiet Wednesday

Greenback extends its rebound to near 106.70.

Fed’s hawkish stance, risk-off sentiment support Greenback demand.

Fed officials emphasize caution in rate cuts due to economic data, inflation risks.

The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, has traded with solid gains, rising to 106.70. The DXY's upward trajectory is driven by factors such as recent strong economic data, rising yields, and a less dovish stance from the Federal Reserve (Fed). 

Factors driving its strength include geopolitical tensions, cautious Fed rhetoric on interest rates, and solid US economic data. The uptrend remains intact, supported by the economy's resilience and limited expectations of aggressive Fed easing. That being said, after the index reached yearly highs around 107.00, a pullback or a period of consolidation is possible.