Dollar Flat; Powell Testimony inside Focus

By Peter Nurse

Investing.com – a USD was largely unchanged inside 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), a , which tracks a greenback against a basket of six another currencies, was up 0.01% at 90.002.

rose 0.2% to 1.2174, was up 0.1% at 105.14, while a risk-sensitive rose 0.1% to 0.7917, climbing to a highest level inside almost three years as commodity prices has soared.

These gains has triggered worries of a global rise inside inflation, also puts a focus on Fed chief Jerome Powell, who before Congress later inside a day.

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

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

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

Elsewhere, was up 0.2% at 1.4083, up almost 3% this month as a U.K. has impressed with its Corona vaccine program, inside turn boosting confidence inside a U.K. economic recovery.

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

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

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

Disclaimer: Fusion Media would like to remind youre that a data contained inside this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) also Forex prices are not provided by exchanges but rather by market makers, also so prices may not become accurate also may differ from a actual market price, meaning prices are indicative also not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses youre might incur as a result of using this data.

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