Advertisement
fxgiants
Advertisement
InstaForex
Advertisement
24option
BREAKING NEWS : $500 - $5000 No Deposit Bonus Hurry up, Join Now!
Written by experienced traders and professional market analysts, our Forex technical analysis is just what you need to get an edge in your Forex trading
Advertisement

Dollar catches a bid after Fed J. Powell's mildly hakish comments

Written by By Bob Hunt | 2019-01-11 00:39:00 GMT

Dollar catches a bid after Fed J. Powell's mildly hakish comments

The greenback erased its losses made in Asia and regained traction in European morning against majority of its peers on Thursday due to optimism in U.S./China trade talks and as investors remained cautious ahead of UK Parliamentary vote next Tuesday. Dollat later extended intra-day gain after Fed Chair J. Powell's midlly hawkish comments.  
  
Reuters reported Federal Reserve Chairman Jerome Powell said on Thursday the U.S. central bank has the ability to be patient on monetary policy given stable price measures, and he downplayed predictions from policymakers suggesting interest rates would be raised twice more this year.  
  
"Especially with inflation low and under control we have the ability to be patient and watch patiently and carefully as we ... figure out which of these two narratives is going to be the story of 2019," he said of good momentum in economic data and, on the other hand, concerns in financial markets over risks.  
  
"There is no such plan," Powell added when asked at the Economic Club of Washington about December forecasts from Fed policymakers showing they expect a median of two more rate hikes in 2019, after four last year. "That was conditional on a very strong outlook for 2019, an outlook that may still happen," he added.  
  
Earlier, U.S. President Donald Trump said on Thursday there was tremendous success with China on trade, a day after U.S. and Chinese officials concluded three days of trade talks in Beijing.   
  
Versus the Japanese yen, although dollar fell from 108.26 at Asian open to 107.77 on renewed weakness in Asian equities due to soft China inflation data, price found renewed buying and rose to 108.22 in Europe then ratcheted higher to session highs of 108.52 in New York afternoon after Fed J. Powell's comments.  
  
Reuters reported the Chinese consumer price index (CPI) rose 1.9 percent last month compared with a year earlier, also below market expectations for a 2.1 percent gain.  
  
That compares with November's 2.2 percent growth, and Beijing's 2018 target of around 3 percent.  
  
Although the single currency edged up to a fresh 2-1/2 month high at 1.1570 in Asia, broad-based profit taking emerged and knocked price down to 1.1518 in Europe, then later hit session lows at 1.1485 in NY afternoon on continued dollar's strength after J. Powell's comments.  
  
The British pound remained under pressure and fell steadily from 1.2800 at Asian open to session lows of 1.2728 in Europe due to renewed Brexit concerns as well as dollar's strength and investors took profit from recent gains before UK Parliamentary vote next week and then recovered to 1.2781 in New York.  
  
In other news, Reuters reported European Central Bank policymakers gathering in December suggested revisiting the use of cheap, multi-year loans to banks in the months ahead and sparred on the outlook for the euro zone's economy, minutes of the meeting showed on Thursday.   
  
"Looking ahead, the suggestion was made to revisit the contribution of targeted longer-term refinancing operations to the monetary policy stance," the ECB said in its account of the Dec 12-13 meeting.  
  
Data to be released on Friday :  
  
Australia AIG construction index, retail sales, New Zealand building permits, Japan household spending, current account, trade balance, Eco. Watchers outlook, Eco. Watchers current, Italy industrial output, UK GDP, industrial output, manufacturing output, construction output, goods trade balance, trade balance, NIESR GDP estimate, EU ZEW economic sentiment, and U.S. CPI, real weekly earnings, trade balance, Federal budget.  
  

Author

By Bob Hunt
FXTM

Start Trading With Top Industry Brokers

Broker Profile Open Account
xm
  • Minimum Deposit: 5 USD
  • Leverage of up to1:500
  • Broker Type : Market Maker
  • Regulation : CySEC 120/10 (Trading Point of Financial Instruments Ltd) ASIC 443670 (Trading Point of Financial Instruments Pty Ltd) FCA 705428 (Trading Point of Financial Instruments UK Ltd)
  • xm
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
    Trade
  • Offer: 30USD No Deposit Bonus
  • Minimum Deposit: 25 USD
  • Leverage of up to 1:500
  • Broker Type : ECN/STP & STP
  • Regulation : FSA SD008
  • Tickmill

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
    binance
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
    changelly
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
    bitmex
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
    XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
    eToro
  • Offer: 1000USD Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:400
  • Broker Type : STP
  • Regulation : ASIC, 335692 CFTC/NFA, 0382918 CySEC, 109/10
  • eToro

    Contact us
    fxvnpro@gmail.com
    kieuthanhgc@gmail.com