The U.S. Dollar Steadies After Powell's Testimony - What to Expect Next
As the U.S. dollar stabilized near a three-week low, investors are closely watching Fed Chair Jerome Powell's testimony for clues on interest rate cuts. The Dollar Index edged lower to 104.770, just above Monday's low.
In his initial testimony, Powell highlighted the cooling labor market and the need for more data before considering a rate cut. However, he also mentioned the risks the central bank faces, hinting at a possible September rate cut.
Meanwhile, the euro rose slightly to 1.0819 after the French parliamentary elections resulted in a hung parliament. The pound traded higher at 1.2801 ahead of the general election. In Asia, the yen traded higher at 161.56, while the yuan weakened after Chinese inflation data.
Overall, investors are awaiting Powell's second testimony for more insights on the central bank's future actions. The political uncertainty in France and the upcoming elections in the UK are also factors to watch. Stay tuned for more updates on the financial markets.