- GBP / USD gains momentum across the board during Powell’s presentation.
- The US dollar turns negative, the stock markets cut losses.
The British pound has recovered sharply after the first comments from Jerome Powell and rose to 1.4113, reaching the highest level since 2018. The upward movement has taken place amid a falling US dollar.
Powell, Chairman of the Fed, has mentioned that the economy is a long way from employment and inflation targets. So he has offered no surprises in his biannual presentation in Congress. The central bank keeps promising keep rates close to zero for a long time until full employment and inflation exceed 2% for some time.
The US dollar has turned negative after the first comments and the US stock markets have rebounded. Powell is now answering questions from lawmakers. The DXY index slides from 90.25 back to the 90.00 area. US yields fell. The 10-year bond has fallen from 1.38% to 1.34%, weakening the dollar.
The pound gained momentum not only against the US dollar, but also against the euro. The EUR / GBP cross has fallen below 0.8620, hitting a new one-year low.. The positive trend for the pound remains intact, supported by expectations that the UK economy will be the first to fully reopen in Europe.
GBP / USD technical levels
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