Home > XE Currency Blog > XE Market Analysis: Dollar Steadies After Powell's Speech

AD

XE Currency Blog

Topics6443 Posts6488
By xemarketanalysis November 29, 2018 2:47 pm
    xemarketanalysis's picture
    xemarketanalysis Posts: 704
    XE Market Analysis: Dollar Steadies After Powell's Speech

    OVERVIEW

    • 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.

    HIGHLIGHT

    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.

    US DOLLAR

    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.

    BRITISH POUND

    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.

    EURO

    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.

    CANADIAN DOLLAR

    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.    

    AUSTRALIAN 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.

    FEATURED CURRENCY

    Paste link in email or IM