Today's insight: USD cautious after Fed Chair’s comments
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USD cautious after Fed Chair’s comments
The chairman of the US Federal Reserve, Jerome Powell struck a cautious tone when he gave his speech on Thursday and that called into question the likelihood of an interest rate cap from the Fed at their next meeting. Up until now, that appeared to be set in stone. The effect of his caution has been that the dollar has stalled after advancing throughout the last week. The GBP/USD rate is trading sideways around $ 1.2625 and the EUR/USD rate has flattened off at $ 1.0545. Both of these pairs are significantly lower than where we were at the start of the month and US dollar strength is evident elsewhere as well. We are unlikely to see much change on Monday, due to the lack of hard data and there is very little data due from the US until Thursday's purchasing managers indices but US politics, as you may have noticed, is centre stage right now. Policy pledges being made by the assembling Trump administration are having an impact and influencing the US dollar as a result.?
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