FOREX: Bessent's Optimism on Growth Adds to Modest USD Tailwind

Bessent's optimism on growth, laying out the groundwork for US growth akin to the "late 1800's or 1990's" is helping the USD higher at the margins and pressing EURUSD toward flat (thereby erasing the ~40 pip gains at the European open). The better-than-expected Empire Manufacturing print will also be helping.

• US 10y yields finding a base at 4.00% has proved a key catalyst, although markets have looked through the persistent S/T uptrend in equities across Wednesday.
• Note this is the reverse of the early NY trade yesterday, wherein the USD traded stronger across much of Europe, but weaker into US hours. In USD Index terms, the price is still weaker on the day, although well off pullback lows.
• We don't expect today's Fedspeak to spring particular surprises. QT-related commentary, realistically from Miran, could be interesting after Powell indicated it may be nearing an end in the coming months late yesterday. More notable will be the Fed's Beige Book at 1900BST/1400ET, with anecdotal evidence of heightened importance amidst a dearth of government data releases.