Economy Forex News Shares

The Dollar Backpedaled From Highs in Trade Today

Sponsored

The dollar backpedaled from high in trade today. This happened after the Federal Chairman encouraged investors that there is no immediate rush to constrict markets. The losses were kept to a minimum by investors attitude ahead of China’s data reports, due soon.

Chairman Powell remarked last night that more inflation appeared to be connected to reopening countries. He further elaborated that he felt it would be a mistake to proceed with titration too early as it would negatively impact markets. These statements halted the dollar just shy of a three-month height. It would have done better against the euro and hit a one-week gain on the yen.

Global

China, meanwhile, unexpectedly loosened its grip on monetary policy in the previous week. This pushed speculation that quarterly growth figures could come out lackluster. The Chinese trade data did do better than estimates said it would, however.

Expert Comments

“The market is still on an uncertain path,” remarked National Australia Bank strategist Rodrigo Catril. “The dynamics of different currencies seem to be being overwhelmed by the dollar dynamic,” he continued. This is apparently pushed by the new COVID variant, Delta.

Catril continued his statement by saying “The big experiment is really the full reopening in the UK, and If that could be successful, we think it’s going to be a huge factor in terms of confidence and pricing a broader and sustained recovery,” This could tank the dollar, MetaNews reported.

We have seen that the differences between Powell and big banks is stark. These mixed sentiments are giving investors a lot to think over at the moment. No one is sure who to listen to, presently. Powell continues to reassure investors, but banks are securing moves that would pay off in the short term in the event the bears take over. The dollar backpedaled from high in trade today.

Avatar

Billy Houghton

Billy Houghton is a top acclaimed and sought-after commodities futures trading expert. The expertise and in-depth level of analysis that is offered by Billy Houghton is what has managed to put him at the stage of being the top ranked author for MetaNews among multiple different categories. Throughout his career, Billy has specifically spent over three decades on Wall Street fine-tuning his skills, which included over two decades at a trading desk. In more recent times, specifically the last decade, Billy has been researching algorithms of AI in futures trading, and believes they are the future of trading.
Follow Me:

Related Posts