This market movement needs to be known to traders ahead of Powell's speech! - Kakiforex | Forex markets for the smart money. This market movement needs to be known to traders ahead of Powell's speech! This market movement needs to be known to traders ahead of Powell's speech!

February 23, 2021

This market movement needs to be known to traders ahead of Powell's speech!

 The US dollar jumped from a six-week low on Tuesday as investors turned their attention to the question of how the head of the U.S. Federal Reserve. Jerome Powell will respond to inflation expectations. On the other hand, commodity-related currencies continue to soar.


The recent rise in inflation expectations has prompted investors to believe that the economic recovery will be faster. Analysts expect Powell will provide more room for inflation to grow without raising rates. This action could stimulate the bond market and reduce US dollar holdings.


UniCredit analysts added that the Fed is still far from achieving its goal and may need more adequate progress before reducing bond purchases.



The US dollar index, which measures the greenback against major currencies, rose 0.24% to the 90.218 exchange rate as at 9.30 p.m.


Commodity-related currencies such as Canada, Australia and New Zealand each recorded the best performance in 2021 when it jumped to a 3-year high.


Sterling continued to show strengthening following the launch of the Covid-19 vaccine which is expected to revive the British economy. The Euro currency is still strengthening driven by Euro zone government bond yields.