Global Forex Market
THE dollar started the week on a strong footing due to the better-than-expected labour market data which tapered expectations for a 50bps rate cut in July’s FOMC meeting. However, the dollar’s strength was short-lived after both the minutes of the FOMC meeting and the Fed Powell’s congressional testimony took an outright dovish turn, reigniting expectations of a 50bps cut in July. During his testimony, Powell signalled his willingness to cut interest rates by the end of the month, citing “uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the US economic outlook”, and there’s “a risk that weak inflation will be even more persistent than we currently anticipate”.
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