FOREX
The US dollar is on the back foot as Wednesday’s trading gets underway. The greenback’s weakness started late on Tuesday, after a public address by the Federal Reserve Chairman, Jerome Powell, who mentioned that interest rates may end up climbing higher than previously thought but also acknowledged an ongoing disinflation process. The markets chose to focus on the second part of Powell’s message, finding reasons to be cheerful in the fact that the Fed remains data dependent and therefore a pause, and even a monetary policy pivot in the not-too-distant future, could still be on the cards should inflation continue to stabilise. With moderate optimism returning to the markets, the US dollar lost ground to other major currencies, halting the rally that followed Friday’s monster jobs report.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrades
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