U.S. dollar held steady as investors shift their focus towards Jerome Powell’s first congressional testimony

Dollar index

Monday, the dollar held firm against its major currency rivals as investors shifts their focus towards the Federal Reserve Governor: Jerome Powell’s first announcement for signs that could indicate the future pace of the anticipated U.S. monetary tightening. According to the dollar index, the greenback’s stance against its major currency rivals remained firm at 89.879 .DXY.

The dollar gained an approximate percentage of 0.9% last week, pulling the currency from its three-year low of 88.25 experienced on February 16, 2018. The positive stance of the dollar was brought by the Federal Reserve’s January rate-setting meeting which has offered support for the currency, helping it recover from its weakness last week.

In accordance to this, analysts and investors are now focused on Federal Reserve Governor: Jerome Powell’s congressional testimony on February 27, 2018 which will tackle monetary policy and the U.S. economy, investors and analysts are monitoring Powell’s speech, for signs about the progress of the U.S. rate increase.

However, Stephen Innes, head of trading in Asia-Pacific for Oanda mentioned in a note that there is no motive for Jerome Powell to announce any hints in accordance to the progress in the Federal Reserve record. Stephen Innes also added, that the new Federal Reserve Governor will likely be less dependent on economic data rather than his predecessor.

 

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