Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Flat; Powell Testimony in Focus

ForexFeb 23, 2021 03:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - The dollar was largely unchanged in early European trading Tuesday, after earlier falling to a near six-week low ahead of Federal Reserve Chairman Jerome Powell’s semi-annual testimony to Congress.

At 3:55 AM ET (0755 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, was up 0.01% at 90.002.

EUR/USD rose 0.2% to 1.2174, USD/JPY was up 0.1% at 105.14, while the risk-sensitive AUD/USD rose 0.1% to 0.7917, climbing to the highest level in almost three years as commodity prices have soared.

These gains have triggered worries of a global rise in inflation, and puts the focus on Fed chief Jerome Powell, who testifies before Congress later in the day.

He is expected to provide assurance that the Fed will not respond to higher inflation with an immediate rate hike, which could potentially cause the dollar to drop further.

“His challenge will be to express confidence in the recovery, but not too much confidence such that the bond market slide turns into a collapse,” said analysts at ING, in a research note. 

“Typically, the Fed finds the right words on these occasions – most certainly downplaying the forthcoming rise in inflation into 2Q – such that the bond market decline can probably stay orderly.” 

Elsewhere, GBP/USD was up 0.2% at 1.4083, up almost 3% this month as the U.K. has impressed with its Covid-19 vaccine program, in turn boosting confidence in a U.K. economic recovery.

Britain's unemployment rate rose to 5.1% in the last three months of 2020, its highest since the first quarter of 2016, official data showed Tuesday. That said, separate data from the Office for National Statistics showed that the number of employees on company payrolls in January rose by 83,000 from December.

On Monday, U.K. Prime Minister Boris Johnson set out his aim to ease lockdown rules in a series of stages over the next four months.

“The switch from Brexit-related uncertainty to the vaccine rollout-related upside to the UK growth outlook argues for more frequent periods of GBP valuation overshoots,” ING added.

 

Dollar Flat; Powell Testimony in Focus
 

Related Articles

Dollar Bounces Off Lows; Fed Remains Accommodative
Dollar Bounces Off Lows; Fed Remains Accommodative By Investing.com - Apr 09, 2021 3

By Peter Nurse Investing.com - The dollar edged higher in early European trading Friday, but remains anchored near two-week lows following disappointing jobless figures and with...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Shivam Dave
Shivam Dave Feb 23, 2021 5:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why would Fed increase rates when stimulus has to come in trillions. Can't understand the logic.
Andrew Allen
Andrew Allen Feb 23, 2021 5:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
don't worry, they cannot and will not raise rates
Michael Galo
Michael Galo Feb 23, 2021 5:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what a world.. Jesus is coming soon... all of this won't matter... can't take it with you...
Hong Xiong
Hong Xiong Feb 23, 2021 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's ok. just print a few more trillions, nobody will notice 🎃
Silver Bull
Silver Bull Feb 23, 2021 3:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
In other words the Fed can just lie and the markets believe him? Sounds exactly like a ponzi scheme.
Marvin Rodriguez
JPM741321 Feb 23, 2021 3:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
pretty much. if you're not willing to go through the numbers on your own, what choice do you have?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email