U.S. Dollar Climbs After Powell's Testimony
10 July 2024 - 12:11AM
RTTF2
The U.S. dollar advanced against its major counterparts in the
New York session on Tuesday, as Federal Reserve Chair Jerome Powell
said that recent data showed progress in easing inflation but
officials need more confidence before easing monetary policy.
In his semi-annual testimony before the House Financial Services
Committee, Powell said that the most recent inflation readings
indicated some modest further progress but more good data is needed
to strengthen confidence that inflation is moving towards the
target.
"In light of the progress made both in lowering inflation and in
cooling the labor market over the past two years, elevated
inflation is not the only risk we face," Powell said. "Reducing
policy restraint too late or too little could unduly weaken
economic activity and employment."
Addressing the current state of the U.S. economy, Powell noted
recent indicators suggest the economy continues to expand at a
solid pace.
He added, "In the labor market, a broad set of indicators
suggests that conditions have returned to about where they stood on
the eve of the pandemic: strong, but not overheated."
The greenback moved up to a 5-day high of 161.51 against the yen
and a 4-day high of 1.2777 against the pound, from yesterday's
close of 160.79 and 1.2805, respectively. The greenback may
challenge resistance around 164.00 against the yen and 1.23 against
the pound.
The greenback advanced to 4-day highs of 1.3648 against the
loonie, 0.6723 against the aussie and 0.6112 against the kiwi, from
yesterday's closing values of 1.3634, 0.6736 and 0.6125,
respectively. The currency is likely to locate resistance around
1.38 against the loonie, 0.64 against the aussie and 0.58 against
the kiwi.
The greenback edged up to 1.0805 against the euro from Monday's
close of 1.0823. The currency is likely to locate resistance around
the 1.06 level.
The greenback rebounded to 0.8986 against the franc. This may be
compared to a previous 4-day high of 0.8990. Next key resistance
for the currency is seen around the 0.92 level.
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