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Wednesday, March 29, 2023

The super dollar fell at the beginning of the week awaiting Powell and key data

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He dollar American lost positions while investors waited Federal Reserve Chairman Jerome Powell’s testimony before the United States Congress triggers investor caution at the start of the week.

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The dollar fell against a basket of currencies on Monday as investors awaited testimony from Federal Reserve Chairman Jerome Powell and jobs data due later in the week for more clues on the rising path of the US dollar. interest rates of the entity.

Powell’s testimony before Congress on Tuesday and Wednesday and Friday’s employment data “They are going to be the key events of this week to corroborate the data that we obtained last month with respect to the figures for January”said Bipan Rai of CIBC Capital Markets in Toronto.

The dollar index rebounded from the nine-month low of 100.80 hit on February 1 as strong data and still-elevated inflation led investors to price in higher rates for longer. It was down 0.26% on the day, at 104.35 points.

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Data on Monday showed new orders for US-made products fell in January, dragged down by a decline in civil aircraft bookings. Meanwhile, the New York Fed said global supply chains are “back to normal.”

Powell’s testimony will be watched for further signs as to whether the Fed might once again accelerate the pace of rate hikes in response to recent data. After making sharp increases last year, the central bank raised interest rates by 25 basis points each at its last two meetings.

The euro gained 0.35% to $1.0671, while sterling lost 0.20% to $1.2019.

The US currency rose 0.15% to 136.02 yen ahead of Bank of Japan Governor Haruhiko Kuroda’s latest policy meeting on Thursday and Friday.

The Chinese yuan and Australian dollar fell after China on Sunday set an economic growth target for this year of around 5%, below expectations.

Source: Ambito

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