Forex Marketz Daily Forex News – Fully Markets Update
The dollar found some support this morning and inched its way higher during Asian trade hours. Traders are looking towards today’s testimony from Federal Reserve Chairman Jerome Powell. This will be his first congressional testimony. They will be looking for and signs regarding the pace of rate hikes this year and next.
Powell will testify on the economy and monetary policy at 2 pm GMT, before the U.S. Senate Banking Committee. This will be followed by more testimony, at the same time on Wednesday, in front of the House of Representatives and their Financial Services Committee.
The Fed chief is likely to reaffirm the Fed’s gradual monetary tightening policy. He might show some caution on trade. That might hurt traders and their appetite for risk.
This morning the dollar index, which measures the U.S. currency against six other Forex majors, was higher. The index gained 0.2 percent to trade at 94.529.
Looking at the benchmark USD/JPY market, the dollar was also higher. The U.S. currency gained 0.2 percent to 112.41 yen. This is close to its six month high, set July 13, at 112. 80 yen. Japanese markets were open today after closing yesterday for a public holiday.
Looking at the AUD/USD market, this market gained 0.1 percent to trade at 0.7414. The EUR/USD was flat. It last traded at $1.1709
The Dollar has been and continues to be capped by Trade worries with China
The U.S. currency has been capped, as far as its gains go, by trader worries over an escalating trade war between the United States and China, Canada, Mexico, the European Union and other allies.
These worries have not seemed to stop recent gains with the sawbuck this year, however.
