Powell's Crime, Weak USD!

thecekodok

 The US dollar fell to its lowest level since November after Federal Reserve (Fed) Chairman Jerome Powell said it might take time to start lowering its balance sheet.


Testifying before the Senate Banking Committee at an earlier session, Powell acknowledged that the economy has been growing rapidly in recent years, while the labor market is getting stronger.


In addition, he also said that the Fed will prevent higher inflation from continuing to spread in the U.S. economy.



However, unlike what was described in the minutes report of the recent FOMC meeting, Powell said that a reduction in the balance sheet may not happen in the near future, thus easing expectations for a more aggressive reduction (tapering) from the Fed.


This less hawkish statement has pushed the greenback dollar trading to weaker, with the dollar index trading lower at 95.60 against most major currencies.


Investors are now shifting their focus to the publication of US inflation data to be the next mover in the market.


Meanwhile, the pound was seen continuing to record higher gains at a two -month high, trading at around 1.36300 against the greenback dollar.

Tags