This is the most important news in the Forex market today.
Greenback dives ahead of Fed testimony
On Tuesday, the evergreen buck declined ahead of congressional testimony by Fed Chair Jerome Powell that market participants are going to scrutinize for signs on the tempo of American interest rate lifts as well as risks coming from trade clashes.
On Tuesday, Powell is on the verge of testifying on the American economy as well as monetary policy before the US Senate Banking Committee.
The statesman is anticipated to deliver a positive message on the outlook for surge and reaffirm the key US bank’s gradual monetary tightening policy. However, Powell is expected to be bombarded with hard questions as for the Fed’s independence and how the major bank would deal with the intensifying global trade conflict.
Financial experts at Societe Generale are assured that the worsening trade clash is getting a realistic threat, which could put pressure on market sentiment as well as capital spending.
The evergreen buck slumped 0.2% versus a group of six key currencies, offsetting small leaps recorded during the morning trading session.
The evergreen buck stood still versus the Japanese yen, showing 112.27 yen, having approached a six-month maximum of 112.80 yen.
The evergreen buck’s revenues have been capped this year by fears over the intensifying trade clash between China and America, although the worries haven’t ruined the US dollar’s firm performance so far.
On Monday, the International Monetary Fund had warned that worsening and sustained trade clashes following American tariff action might confound economic recovery and also depress medium-term surge prospects.
The common currency and the British pound added a bit versus the evergreen buck. The euro managed to leap up to 0.2% coming up with an outcome of $1.1738 having weakened 0.5% the previous. Meanwhile, the UK currency rallied 0.1% being worth $1.3255.
As for the Australian dollar, it ascended 0.1% trading at $0.7428.
During today's press conference, the ECB president said that the data was "somewhat" better than the expectations in the first quarter. T
Australia will release the level of employment change and unemployment rate on June 13, at 4:30 MT time.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Monday, gold declined because the evergreen buck managed to gain early traction, thus putting pressure on the most popular precious commodity, which has been sticking with the year’s minimums…