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By xemarketanalysis November 29, 2018 2:47 pm
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    XE Market Analysis: Dollar Steadies After Powell's Speech


    • Traders now only price in one rate hike for the US in 2019.
    • Sterling continues to hover around vital 1.2750 level as Brexit concerns mount.
    • The South African Rand is supported by Fed's dovish tone.


    The South African Rand has strengthened against the Greenback today following Fed Chair Powell's speech where he eyed more gradual rate hikes than anticipated.


    The Dollar has somewhat steadied today following a speech by Federal Reserve Chair Jerome Powell yesterday where he stated that rates were near to being neutral. This is in stark contrast to previous statements where rates were mentioned as relatively far away from neutral.


    The Pound is slightly weaker today as the Bank of England's Brexit deal scenarios were digested. Sterling moved towards a two-week low on concerns over the Parliamentary vote going against PM May.


    The Euro is stronger against a few currencies today as a slight compromise was seen in the Italian Budget negotiations. Italy seems to have offered a budget deficit of 2.2% but this still falls away from the EU's guidelines. We will see if this is a satisfactory compromise for the EU in the coming days.


    The Canadian Dollar is slightly stronger on the back of a slight rebound in oil prices and a tightening in the current account deficit. Oil prices were up around 1.8% today forcing the Loonie up slightly. It is now back to around flat against the US Dollar.    


    The Australian Dollar gained ground after Powell's speech as the global markets fled away from the Greenback and into the Aussie. It is however fairly flat on the day as gains are held onto by commodity currencies.


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