InstaForex

November 23, 2021

Powell Candidate For Second Term As Fed Chairman, This Is The Reaction Of The USD!

 The greenback dollar once again became the champion in the charts after United States (US) President Joe Biden officially re -nominated Jerome Powell as Chairman of the Federal Reserve (Fed) for a second term.


After months of facing uncertainty about the next U.S. central bank leader, investors saw this decision as positive for further normalization of monetary policy.


Following that, President Biden said he believes Powell is the right person to achieve full employment targets and tackle high inflation.


Demand for the US dollar has risen this month supported by expectations of an earlier interest rate hike following buoyant economic data and market risk-off sentiment following concerns over the resurgence of Covid-19 in Europe.



The dollar index, which measures the strength of the greenback against most major currencies, rose to 96.45, the highest level since July 2020.


Meanwhile, the euro depreciated to 1.1240 against the US dollar, also its weakest level since July 2020.


The currency continued to be dragged lower amid growing concerns over the implementation of the new Covid-19 embargo in Europe, where Australia has announced a nationwide lockdown and Germany is considering following suit.


Being the focus of investors today is the release of manufacturing and services PMI data from Europe, where the European Zone is expected to record a slight decline in growth this month, while the UK is forecast to increase.