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The dollar, the Federal Reserve, is at the center of attention



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Dan Kindwood | Getty Images

The dollar was on Thursday after Federal Reserve Chairman Jerome Powell created the basis for lowering the rate at the end of this month, promising to "act as fit" to provide the world's largest economy capable of supporting a decade-long expansion.

As Congress testified, Powell pointed to the "broad" global weakness that overshadowed US economic prospects in the context of the uncertainty surrounding the trade-related consequences of the Trump administration with China and other countries.

By adding to his general tone in his testimony, the protocols of the previous political meeting of the Fed showed that many politicians believed that in the near future more stimuli would be needed to revive speculation on the aggressive decline in rates.

The Euro traded at the level of 1.1260 dollars, having slightly changed in the beginning of Asia after it increased by 0.38% on the previous day.

The dollar dropped by 0.1% to 108.31 yen, increasing the slides from a six-week high of 108.99, set on Wednesday before Powell's testimony.

The dollar index against the six major currencies dropped by about 0.4% on Wednesday, turning the negative for a week to 97.104.

The price of money in the money market jumped to about 30%, with the Fed lowering its rates by 50 basis points in its next policy analysis July 30-31, a scenario that was valued after strong data on US job vacancies. 39th night

Cutting by 25 points is already taken into account.

"The lowering of the rate is completely sealed in July, but on the other hand, Powell has lowered the hint that he will do afterwards, because he sounded quite optimistic in the economy," said Kiosuke Suzuki, director of foreign currencies at Societe Generale. .

"This uncertainty, I think, is likely to keep the dollar within fairly strict limits over the next few weeks," he said.

Elsewhere, the British pound jumped from a six-month low to trade at $ 1.2508.

But it is still falling for weeks when the British currency was persecuted by the economic turmoil of Britain and a quick approach to Brexit's term.

A series of bad data in the UK and the risk of leaving the European Union without negotiating transitional trade agreements forced the Bank of England to change its optimistic assessment of the economy.

By contrast, the Canadian dollar was close to the eight-month high last week, as the Bank of Canada did not show any signs that it would respond to a potential reduction in the interest rate from the Fed, making it clear that it does not intend to monetize monetary policy.

The Canadian dollar was $ 1.3072 per US dollar, close to C $ 1.3038, which affected a week ago.

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