He made these comments in an appearance before Congress, in which appeared to show increasing faith that inflation will return to the Federal Reserve’s targeta requirement for easing monetary policy.
In this context, the dollar index, which measures the performance of the US currency against the euro, the pound, the yen and three other major currencies, rises 0.11% to 105.09 pointsIt fell to 104.80 on Monday, its lowest level since June 13.
Statements by Jerome Powell
Powell said that lInflation “continues to exceed” the US Federal Reserve’s 2% targetbut that it has been improving in recent months and that “more good data would reinforce” the arguments in favor of interest rate cuts by the central bank.
“The market is counting the days until we get a rate cut signal from Fed Chairman Powell, and I think there were some in the market who were expecting a more concrete move toward rate cuts later this year,” he said. Adam Button, Chief Currency Analyst at Forex Live in Toronto.
From the Friday’s employment reporttraders have increased bets that the Federal Reserve will cut interest rates twice between now and December, although the first reduction is likely to occur in September.
June employment data showed an increase in unemployment and downward revisions to job creation in the previous two months.
Reactions of the euro, yen and pound
He euro falls after wild swings on Monday as investors accepted the outcome of a divided parliament in France, which points to possible political deadlock but reduces fiscal concerns arising from victories by the far right or left. The single currency fell 0.04% to $1.0818. It reached $1.0845 on Monday.its highest level since June 12.
The dollar appreciates 0.29%, to 161.27 Japanese yen and remains below last week’s 38-year high of $161.96. Sterling was down 0.09% at $1.2794.
Among cryptocurrencies, Bitcoin is up 1.76% to $57,254.
Source: Ambito
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