© Reuters.
By Peter Nurse
Investing.com – The US dollar lost positions at the start of trading on Wednesday in Europe, falling after a relatively dovish speech by Fed Chairman Jerome Powell boosted hopes that the central bank would soon ease. monetary politics.
By 09:10 AM ET (0910 GMT), the , which tracks the currency against a basket of six other major currencies, was down 0.3% at 103.005, after also falling 0.3% on the day former.
The currency market was expected to weigh on expectations for rate easing, especially after the surprising strength of the US jobs report on Friday.
Instead, while Powell acknowledged that prices might have to rise more than expected if economic conditions remained strong, he has also reiterated that he believes a process of disinflation was underway.
That said, the dollar’s losses have been limited and the index remains not far from the one-month highs recorded on Tuesday, after Friday’s signaled the creation of 517,000 jobs, raising expectations that the Fed will would have to keep raising interest rates.
“The general environment is not helping to lure markets back into risky assets and away from the dollar as a safe haven,” ING (AS:) analysts say in a note. “US-China tensions are a source of concern and are likely to weigh on confidence globally, and the euro zone cannot count on a flow of supportive data to keep growth revaluing in the process.”
In other markets, the pair points to a rise of 0.3% to the level of 1.0751, after falling to 1.0669 in the previous day, its lowest level since January 9, it rises 0.4 % to 1.2088, recovering after hitting a one-month low on Tuesday at 1.1961, while the risk-sensitive 0.3% rose to 0.6979.
The pair is down 0.1% to the 130.98 level, after falling 1.2% in the previous day. Attention remains focused on who will be the next governor of the Bank of Japan.
Japanese Prime Minister Fumio Kishida said on Wednesday that the new Bank of Japan governor should have strong communication skills and coordinate closely with central banks around the world.
The pair is down 0.3% to the 82.612 level after he hiked interest rates by 25 basis points, as expected, but has also surprised markets by leaving the door open for further interest rate tightening. monetary policy, stating that core inflation remained high.
