The dollar extends its bearish run from last week as great economic data and tremendous oil inventory report continues to weigh the currency down. Furthermore, the greenback is also peeling some of its prices prior to Federal Reserve Chairman Jerome Powell’s testimony.
Fed Chairman Testimony
Reports revealed that the dollar is shedding a considerable percentage as the Fed’s new Chairman’s testimony is looking to heavily swing the currency’s price in the market. Investors are looking to withdraw their support as the dollar’s bearish performance this whole year is worrying.
The incoming testimony from the Fed chairman is heavily regarded as a game changer and analysts are also stating that the outcome will definitely determine currency’s performance, and can ultimately selvage it from the three-year low it sunk in.
The market is looking to peel their eyes with Powell’s first congressional testimony, and the timing is impeccable as investors continue to shy away from the troublesome dollar. The testimony is also looking to enter amidst the U.S. monetary tightening pace after prior years of stimulus.
Economists are expecting Powell to sound optimistic on the economic outlook, but will eventually stress in the future assessment of inflation on whether it will hit another run.
Moreover, most economists and analysts are not expecting any significant changes or influences to take the dollar to whole another level. As investment strategist Roy Teo noted, “The dollar is unlikely to get a major lift after Powell’s speech,”
Looking the greenback’s performance today, the dollar index, which measures the greenback strength against other major currencies, is down by a total of 0.1% to 89.760in the trading session. The damages today add another beating from the softer dollar in the market since yesterday.
Meanwhile, the broader U.S. dollar index was also moved by incremental amounts at 83.59 after having a stellar performance last week, tallying a whopping 0.7% increase.
Furthermore, the dollar’s 2018 performance is nothing short of abysmal despite having several surges this month. The bullish runs were always immediately dispersed and offset by various reasons such as great commodity prices or stronger foreign currencies.
The greenback’s price for this week continues to be apprehended with great economic data that are directly tagged with the crude which boosts the commodity’s prices to elevated grounds. The price gold also managed to take a massive positive route this week as the softer greenback performance continues to dominate the market.
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