The dollar is moving down.. Employment data support is fading, and the word “Powell” did not do it justice By

© Reuters. – The US dollar fell on Wednesday, after a relatively quiet speech from Federal Reserve Chairman Jerome Powell raised hopes that a possible rally soon.

A deal that cannot be lost!

The financial markets are crowded with opportunities that must be exploited to make profits, and this is what you can master by learning fundamental analysis! Learn the basics of fundamental analysis and how it can help you make the best trades for free in a webinar brought to you by trading expert Dr. Hisham Mohamed Younis.

To register for free here:

dollar now

The U.S. currency, which measures the greenback against a basket of six other currencies, was down 0.3% at 103.005, after also falling 0.3% in the previous session.

Move above expectations

The foreign exchange market was expecting Powell to back down on expectations of lower interest rates, especially after the surprising strength of the US jobs report on Friday.

Instead, Powell acknowledged that it may need to move higher than expected if economic conditions remain strong, but he also reiterated that he feels inflation is coming down, which hasn’t supported the dollar much.

However, the dollar’s losses were limited and the index is still far from Tuesday’s one-month high after it rose by 517,000 jobs on Friday, raising expectations that the Fed will need to continue to raise interest rates.

“The general environment is doing little to entice markets back into risky assets and away from the safe-haven dollar,” ING analysts said in a note. “The tensions between the US and China are a source of concern and are likely to affect global sentiment, and the eurozone cannot count on a supportive data stream to keep the growth reclassification process going.”

Read more:  Covid vaccine, third dose for over 40s: the US plan

dollar against other currencies

Elsewhere, it traded 0.3% higher at 1.0751, rebounding from falling to 1.0669 in the previous session, its lowest since January 9, and rising 0.4% to 1.2088, rebounding from Tuesday’s one-month low of 1.1961. , while the risk-sensitive index rose 0.3% to 0.6979.

While the price decreased by 0.1% to 130.98, after declining by 1.2% in the previous session. The focus remains on who will be the next BoJ governor.

Japanese Prime Minister Fumio Kishida said on Wednesday that the new BoJ governor should have strong communication skills and the ability to coordinate closely with global central banks.

Also, it fell 0.3% to 82.612 after it raised interest rates by 25bp as widely expected, but also surprised the markets by leaving the door open for further tightening, saying that core inflation remained elevated.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent News

Editor's Pick