Dollar Downtrend Continues after Powell’s Peaceful Statement

Dollar Downtrend Continues after Powell’s Peaceful Statement

The Dollar dropped on Thursday near a three-year low against the Australian dollar and Canadian dollar after Federal Reserve Chairman Jerome Powell continued his semi-annual testimony to Congress on Wednesday restated the statement that the central bank will not tighten the policy until the U.S economy improves, especially the labor market, and the possibility of an upcoming hike in the inflation rate.

Powell Said. Our Policy is accommodative because of the high unemployment rate and the labor market is not even close to employment.

The Dollar Index was down 0.3% against the basket of six other currencies.

EUR/USD arise 0.2% to 1.2193, near a one-month high.

GBP/USD jumped 0.1% to 1.4153 after arriving 1.43 nightly for the first time since April 2018.

USD/JPY was high 0.2% at 106.08.

AUD/USD climbed 0.3% to 0.7992.
NZD/USD elevated 0.2% at 0.7447.

USD/CAD fell 0.1% to 1.2496, near a three-year low of 1.2493.

The Fourth-quarter gross domestic product is due to release later Thursday, analysts expecting a reading of 2% which could be up slightly from the first print of 1.9%.