The dollar is picking up ground as markets position for a hawkish tone from FOMC Chairman Jerome Powell. In the opinion of ING economists, the recovery of the dollar could take a little longer.
The recovery of the dollar depends again on Powell
“It looks like the markets have already positioned themselves for some pullback on expectations of rate easing, but Surprising strength in US jobs report gives Powell ample scope to sound tougher than expected. As a last resort, the current upward correction could last a bit longer before running out of steam.”
“The broader environment is doing little to lure markets back into risky assets and away from the safe-haven dollar. Tensions between the US and China are a source of concern and are likely to weigh on global sentiment, and the Eurozone cannot count on a flow of supportive data to keep the growth revaluation process going.”
“It seems that just another lower-than-expected delivery (ie a moderate surprise) from Powell can hurt the dollar today.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
