On Monday, February 26, the US dollar trimmed gains vs the majors after the last-week strengthening. The market insiders believe the sluggish positions of the currency are related to the upcoming speech of Jerome Powell, Federal Reserve Chairman, during the Congress meeting this week.
This morning the US Dollar index decreased to 89.62 (0.21% down).
Today the greenback lost some grounds – investors are focused now on the future message of Jerome Powell to the Congress. Specifically, the Federal Reserve Chairman will be talking about the monetary policy and the economic situation in the country this week.
As a result, the US dollar-to-yen exchange rate touched some 106.56 (0.21% down) today. Earlier, the rate was recorded as high as 107.18.
Some improvement was also seen in the GBP-USD pair. The British currency hiked to 1.4046 (0.51%) over the same period. The sterling keeps getting support from the statement of the BoE's deputy governor. In particular, this weekend he reported that the interest rate should be increased in before the expected period in case of an upturn in wages would be in line with the bank's this-year outlook.
The European currency went up to some 1.2330 against the greenback. However, investors keep sticking to careful policy especially taking into account the general election in Italy slated on March 4.