USD / PY remains on track to post small daily gains.
The US Dollar Index remains above 90.15 after Powell’s testimony.
The major Wall Street indices are trading deep in negative territory.
The USD / JPY pair fell below 105.00 for the first time in a week on Tuesday, but reversed its direction during the early trading hours of the US session. However, after hitting a fresh daily high of 105.43, the pair lost its traction and was last seen trading at 105.22, where it was up 0.15% on the day.
DXY seeks to post modest daily earnings
Earlier in the day, the rally seen in the US Dollar Index (DXY) helped the USD / JPY climb. The DXY jumped to a daily high of 90.26 after the major Wall Street indices started the day with a sharp decline, but struggled to climb further.
During his semi-annual testimony before the Senate Banking Committee on Tuesday, FOMC Chairman Jerome Powell reiterated that they will maintain accommodative monetary policy. “We have some important ground to cover before we even get close to full employment,” Powell added and the dollar failed to maintain its bullish momentum. At the moment, the DXY is up 0.15% on the day at 90.15.
Meanwhile, data released by the Conference Board showed that February’s consumer confidence index rose to 91.3, compared to analysts’ estimate of 90, but was largely ignored by market participants.
Macroeconomic data from Japan will not be released on Wednesday and USD / JPY could struggle to make a decisive move in either direction during the Asian session.