What did Powell do until the USD peaked? - Kakiforex | Forex markets for the smart money. What did Powell do until the USD peaked? What did Powell do until the USD peaked?

March 6, 2021

What did Powell do until the USD peaked?

 The US dollar jumped to a three-month high against most major currencies after being driven by 10-year US treasury yields to a one-year high.

Federal Reserve (Fed) Chairman Jerome Powell’s statement unfortunately failed to express concern about rising long -term U.S. bond yields, much like his previous statement.

Following that, the 10-year bond yield jumped 4%, pushing it to close high at 1.55%. While the US stock market was severely affected with the Dow Jones Index falling more than 300 points.

The US dollar gains by several different factors. Powell's confidence in the U.S. economy and its ability to cope with the rate hike is good for the greenback.

Higher bond yields also attracted demand for the US dollar and most importantly, a drop in stocks prompted investors to secure a greenback dollar safe-haven.

The yen continued to weaken to an 8 -month low against the USD after Powell's statement, while the Swiss franc sank to a 4 -month low.

The dollar index that measures the strength of the greenback dollar against a basket of major currencies is at 91.66.

The question now is will this giant currency continue to gain strength from the US NFP jobs data that will be published tonight?

On the other hand, commodity-related currencies lost momentum by declining lower against the US dollar.