The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Greenback is at 1-month minimum as Fed and trade worries put pressure
On Thursday, the evergreen buck dived to one-month minimums versus a currency basket right after the key US bank lifted interest rates, although stuck to its estimate for two more lifts in 2018, while concerns over heightened trade tensions put pressure too.
Estimating the greenback’s value versus a pack of six key currencies, the US dollar index declined 0.26% coming up with 89.06, thus demonstrating its lowest result level since February 19.
The US dollar index dived 0.74% on Wednesday, which is its greatest one-day dive since mid-January.
Some market participants had expected the key American bank to project three more rate lifts in 2018 so the decision to stick to its estimate for two extra lifts was considered by some to be less hawkish than anticipated.
Fed policymakers ramped up their 2019 projection to up to three hikes from the two initially foreseen in December. Additionally, they indicated that they could have rates lifted at a bit more hawkish tempo in coming years with the aim of keeping the strengthening US economy from overheating.
The evergreen buck was also suppressed because the threat of a US- led trade conflict affected financial markets.
Donald Trump was supposed to uncover $60 billion in fresh duties on Chinese imports a bit later in the day. The current presidential administration already imposed duties on American aluminum as well as steel imports earlier in March.
Market participants are actually concerned that key American trade partners could roll out the same measures, threatening the outlook for global surge.
The common currency tacked on to one-week maximums versus the American currency. The currency pair EUR/USD headed north 0.33% being worth 1.2379.
The evergreen buck approached two-week minimum versus the Japanese yen. The pair USD/JPY declined 0.31% ending up with 105.7
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
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