The dollar rebounded yesterday after Fed Chair Jerome Powell said that policymakers are “grappling” with the need of lower interest rates. Overnight, the RBNZ held interest rates unchanged, but signaled that more easing may be underway. The Kiwi slid somewhat at the time of the decision, but was quick to recover and trade even higher against its US counterpart, as this may have been the expected outcome.
USD Rebounds as Powell Says the Fed is “Grappling” with Need for Cuts
The dollar rebounded yesterday, outperforming most of the other G10 currencies. It gained the most against NOK, CHF, GBP and EUR in that order, while it underperformed only slightly versus AUD, NZD and CAD.
The event that woke up some USD-bulls, or at least it encouraged some short-covering, was a speech by Fed Chair Jerome Powell at the Council of Foreign Relations in New York. The Fed Chief stressed the...
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