What Does the Fed Evans Say Until The USD Rises Higher Again?

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 The risk-off sentiment in the market continued to see the greenback dollar remain strong after rising to an eight-week high against major currencies.


Among those focused on the market in the previous session was Federal Reserve (Fed) Chairman Jerome Powell who testified before Congress stating that the US economy remains resilient and the banking system has survived well in the face of the Covid-19 pandemic crisis.


Meanwhile, the hawkish statement of Chicago Fed President Charles Evans has to some extent helped support the strengthening of the US dollar to rise higher.


Speaking at a virtual meeting of the London-based Official Monetary and Financial Institutions Form, Evans said the US economy has now returned to 90% from pre-pandemic levels and the Fed is likely to raise interest rates before the 2% inflation target is reached.


With the rise of the US dollar this week, it has pushed the pound sterling, the Aussie dollar, and the Canadian dollar to a one-month low while the euro has a two-month low.



As expected, the pound continued to depreciate after UK Prime Minister Boris Johnson announced a new restrictive measure enforced for up to 6 months, in which citizens were encouraged to work at home, imposing penalties for not wearing masks or gathering in groups of more than 6 people.


Following the closure of pubs, restaurants, and other hospitality services before 10pm, it will definitely affect many small businesses that could force more closures.


Meanwhile, the euro also traded weakly under pressure from concerns over the second wave of Covid-19 in Europe and the strengthening of the US dollar.


The release of manufacturing and services PMI data from the European and UK Zones today will be the main focus of the market which will definitely affect the movement of European currencies today.

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