The US Dollar is under pressure, following Jerome Powell’s testimony to the congress, which started yesterday. The Chairman of the Fed said, in a pre-written statement, that there are challenges to the growth of the US economy, mainly arising from growing trade tensions. Having also mentioned below target inflation, Mr Powell effectively laid the ground for a rate cut in July and even managed to out-dovish the FOMC; the subsequent publication of the last meeting’s minutes showed that even the more dovish members of the committee were less assertive than Mr Powell in making the case for a rate cut.
Photo by JP Valery.
As a result, the greenback lost ground to all other major currencies and the S&P 500 broke through the 3000 points barriers, for the first time ever.
