The US Dollar continues to record losses against other major currencies, as the momentum started earlier in the week keeps the greenback under selling pressure. Following much better than expected US employment figures, the markets were surprised by the dovishness of Fed’s chairman, Jerome Powell, when he spoke to the US congress earlier this week.
Mr. Powell mentioned commercial tension and difficult credit conditions as reasons for the Fed to be vigilant, and ready to act as appropriate. In central bank talk this means: ‘get ready a rate cut is coming and more may be on the way’. And so, investors are getting ready, selling the Dollar as the certainty of a rate cut announcement at the next FOMC meeting sinks in.
Photo by Jonathan Pielmayer.
