The US Dollar (USD) is tracking lower overall for a second day, reflecting dovish comments from Fed Chair Powell yesterday and some stabilization in risk appetite after the recent wobble in sentiment.
The US Dollar is tracking lower overall for a second day, reflecting dovish comments from Fed Chair Powell yesterday and some stabilization in risk appetite after the recent wobble in sentiment. Chair Powell noted that the US jobs market showed 'pretty significant downside risks', a view later echoed by Boston Fed President Collins, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD backtracks modestly on Powell comments'Powell’s remarks appeared to endorse easier policy if the labour market deteriorates but not at a pace that would risk leaving the 'inflation job unfinished', suggesting comfort with the idea of modest easing steps in line with market expectations. Swaps reflect 25bps of easing priced in for the October 29th FOMC and similar for the December 10th decision. The prospect of easier Fed policy through 2026 constitutes a clear constraint on the USD outlook in broad terms, as does the rising level of Federal government debt. Many large economies are dealing with elevated levels of government debt but few have as weak a profile for the long-term debt trend as the US. Powell’s apparently dovishleaning comments have also had the effect of calming equity market sentiment, with the S&P 500 steadying around Friday’s low .' 'Meanwhile, President Trump gave an unusual thumbs up for the USD in response to questions from reporters yesterday, saying that he was 'very strong on the dollar'. He commented that the BRICS was an attack on the USD but offered no other context. Other members of the US administration have been less enthusiastic about USD strength in the past, however. Across the major currencies, the NOK is leading gains as oil prices steady while the AUD has picked up a little ground after RBA Assistant Governor Hunter said Q3 inflation was likely to be stronger than expected. Gold is extending its ascent and reached a peak of $4218 earlier.' 'Generally, stronger gold prices should add to pressure on the USD. The NY Fed releases its October Empire Survey at 8.30ET and there is a lot more central bank speak over the session, with the Fed’s Miran , Waller and Schmid, the ECB’s Rehn, Villeroy and Guindos, the BoE’s Breeden, the Riksbank’s Thedeen and the RBA’s Bullock and Kent all speaking. Japan releases core machinery orders this evening. Short-term patterns in the DXY suggest a minor top may be in place on the charts around 99.50. Losses may extend below 98.80 to fill a small gap on the charts between 97.80/00.'
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australian Dollar maintains position following RBA Meeting Minutes releaseThe Australian Dollar (AUD) holds ground against the US Dollar (USD) on Tuesday.
Read more »
USD/CAD reaches fresh six-month highs near 1.4050 ahead of Fed Powell’s speechUSD/CAD gains ground for the second successive day, trading around a new six-month high of 1.4043 during the Asian hours on Tuesday.
Read more »
EUR/USD Forecast: Euro remains fragile ahead of Powell speechEUR/USD struggles to hold its ground and trades in the red at around 1.1550 after closing in negative territory on Monday. Later in the American session, Federal Reserve (Fed) Chair Jerome Powell's speech will be scrutinized by market participants.
Read more »
USD/CHF pressured by Swiss deflation data, Powell’s speech awaitedUSD/CHF stays under pressure on Tuesday, with the pair hovering around 0.8030 following weaker-than-expected inflation data from Switzerland.
Read more »
USD/JPY dips as Powell highlights risks, trade tensions lift YenUSD/JPY drops 0.30% on Tuesday to around 151.80 at the time of writing, in a cautious environment dominated by renewed US-China trade frictions. News that both countries are increasing port fees on cargo shipments has reignited fears of a deeper disruption to global trade.
Read more »
EUR/USD climbs above 1.16 as Powell’s neutral tone weigh on DollarEUR/USD recovers some ground on Tuesday as the Greenback weakens post neutral-dovish remarks by Fed Chair Jerome Powell and as the French government announced a suspension of a pension reform. The pair trades at 1.1606 up 0.32%.
Read more »