In a draft speech note of Federal Reserve (Fed) Chairman Jerome Powell, he is expected to tell that the US economy is seen to be improving, but the recorded recovery is still a long way to complete.
According to Powell, the recovery has happened faster than expected and it is seen to be strengthening. Household spending has increased and the housing sector has also fully recovered.
The statement shows cautious central bank optimism in recent weeks amid indications that the recovery is getting stronger.
However, US dollar trading did not appear to be affected by the draft which was released prior to Powell’s testimony and traded stable against most major currencies.
Powell will testify before the House Services Committee on Tuesday and the Senate Banking Committee on Wednesday, which will also be attended by Treasury Secretary Janet Yellen.
Meanwhile, the euro, which had benefited from the depreciation of the US dollar on Monday, traded flat during the opening of the Asian session today.
Tensions between the European Union (EU) and the UK are escalating after the bloc threatened to stop vaccine exports to Britain. If this happens, vaccination programs in the UK may be delayed and this could affect the government’s decision to reopen sanctions.
The pound has been moving weaker since the start of trading earlier in the week with trading around the 1.38400 price level against the US dollar.
