Dollar swoons as Powell soothes policy fears

TOKYO (Reuters) – FX Signals – The dollar slid to its weakest since mid-November against major peers on Wednesday, after Federal Reserve Chair Jerome Powell said it may take several months to make a decision on running down the central bank’s $9 trillion balance sheet.

Dollar Slips After Powell’s

In testimony at his renomination hearing on Tuesday, Powell said the U.S. economy was ready for higher interest rates and a runoff of its asset holdings – dubbed quantitative tightening (QT) – to combat inflation. But he said policymakers were still debating approaches to reducing the Fed’s balance sheet, and that it could sometimes take two, three or four meetings for them to make such decisions.

US Dollar Index Up but Near One-Week Low, COVID-19 Fears

Powell’s comments were less hawkish than those of some of his colleagues, allaying market fears for a sudden withdrawal of monetary support.

Atlanta Fed President Raphael Bostic, for example, said on Monday that high inflation and a strong recovery warrant a rapid rundown of Fed asset holdings.

FX Signals Dollar ahead of Powell Testimony

Forex Signals – Pound to Euro GBPEUR Rises

Dollar Edges Higher; Powell’s Speech

The Australian dollar, often considered a liquid proxy for risk appetite, touched its highest in almost a week at $0.72195.

Sterling rose to $1.3645 for the first time since Nov. 4.

The euro traded near the top of its range of the past two months at $1.13755. A climb above $1.1387 would take it to its highest since mid-November.

FOREX Signals

Dollar swoons as Powell soothes policy fears

FX Signals

The most traded pairs of currencies in the world are called the Majors.EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more… Forex Trading comes with it high risk. We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners. eurusd signals

Forex Signals Telegram Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms.

The Week Ahead

Euro dollar volatility surges

Dollar droops as economic optimism

Dollar swoons as Powell soothes policy fears