Powell's information awaited, Market caution - Kakiforex.com - Financial Market Media No. 1 in the World Powell's information awaited, Market caution Powell's information awaited, Market caution

February 23, 2021

Powell's information awaited, Market caution

The US dollar continued to weaken after falling to a six-week low as investors awaited Federal Reserve (Fed) Chairman Jerome Powell's response to rising inflation concerns.

Powell is scheduled to testify before the U.S. Senate Banking Committee tonight, on the semi-annual report of its monetary policy.

He is also expected to touch on the issue of rising inflation following the recent rise in long-term U.S. treasury yields.

Meanwhile, rising prices from commodity-based materials drove currencies such as the Aussie, New Zealand and Canadian dollars to three-year highs on Monday, as well as supported positive market sentiment on global growth.

Rising world crude oil prices to the latest highs have given the loonie dollar trading support to strengthen higher against the weaker US dollar.

Meanwhile, the weakness of the greenback dollar also benefited the euro to remain strong.

European Central Bank (ECB) President Christine Lagarde noted that banks are now closely monitoring the evolution of long-term nominal bond yields, signaling the institution is ready to intervene and lower debt returns.

The pound sterling also strengthened around a 3-year high even after the disappointing release of UK employment data. The UK unemployment rate rose to the highest in almost five years.