Dollar rallies on Powell's remarks

27 February, 2019

On Wednesday, the evergreen buck ascended in Asia after Fed Chair Jerome Powell came up with a positive assessment of the American economy, although the statesman acknowledged there were some headwinds.

Jerome Powell told that the Federal Reserve doesn’t need to hurry up making a judgement as for further changes to interest rates. He added that the major US bank is ready to have its runoff of the balance sheet policy adjusted if required.

Gauging the purchasing potential of the major American currency versus its primary peers, the USD index added 0.2% hitting 96.005. The USD index went down overnight following Powell’s remarks, although the better-than-anticipated American consumer confidence data tamed downside momentum in the US currency.

In February, the Conference Board’s consumer confidence indicator headed north to 131.4 from 121.7 in January, beating experts’ estimate for 124.7.

The currency pair USD/CNY inched down by 0.2% trading at 6.6874. Market participants are going to keep a close eye on the China manufacturing PMI expected to be uncovered on Thursday, while the Caixin PMI report should show up on Friday.

The currency pair AUD/USD stood still sticking with 0.7187. The Australian dollar has bounced off nearly 2% since the beginning of this month, when it reached its monthly minimum of 0.7054 versus the evergreen buck right after the Reserve Bank of Australia welcomed an interest rate trim.

In addition to this, the currency pair GBP/USD went down by 0.1% hitting 1.3242. This currency pair gained some support and rallied to a five-month maximum in the previous trading session right after British Prime Minister Theresa May provided UK lawmakers with an option to postpone Brexit. Later the UK currency rebounded from its daily maximum because experts told that the lack of other key catalysts pushed investors toward profit taking.


Source  
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