The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Greenback leaps vs. its rivals
On Friday, the evergreen buck was braced for a weekly loss versus its counterparts notwithstanding a leap due to the fact that investors discussed the likelihood of the American government shutdown.
Measuring the purchasing potential of the greenback against its main counterparts the USD index acquired 0.70% demonstrating 96.95.
On Friday, American leader told that ahead of a midnight deadline a long government shutdown would be real. This scenario will come true if the US legislative body fails to pass spending legislation, including $5 billion to have his border wall funded.
The firm profits for the evergreen buck arose even as a mostly negative American economy powered some fears about economic surge.
As a matter of fact, the country’s gross domestic product grew at a 3.4% annual rate for the July-September period. That’s what the Commerce Department disclosed in its final forecast, which appears to be below a previous one of 3.5%.
Moreover, the Federal Reserve's favorite inflation gauge, the personal consumption expenditures price index without energy and food managed to acquire 1.9% for the 12 months through November.
Apparently, core PCE prices turned out to be a bit weaker-than-anticipated, hinting that the key US bank might freeze its rate lifts in the first quarter without being concerned about inflationary pressures.
Early this week Federal Reserve Chair Jerome Powell told that monetary policy verdicts would depend on data. He also emphasized that rate lifts would be put on hold if inflation dives below the major bank’s 2% objective.
The evergreen buck was also underpinned by a slump in the common currency as well as a dive in the value of the UK pound.
The currency pair EUR/USD went down by 0.67% hitting $1.1369, while GBP/USD slipped by 0.15% ending up with $1.2639.
USD/JPY gained 0.04% trading at Y111.32.
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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