On Tuesday, US dollar posts new softening vs the majors, which is related to the expected Congress speech of the Federal Reserve Chairman, Jerome Powell later today. Investors stay in a waiting mode as Powell's report may determine further currency trend this week.
The US dollar index dropped to 89.68 this morning.
Everyone in the market is waiting for Jerome Powell's statement, as this is the first report to the Congress as the Federal Reserve Chairman. The market is unlikely to feel dramatic influence from his report, though investors are striving to see the direction of his speech – bullish or bearish.
The US dollar-to-yen exchange rate already exceeded 107. Better demand for Japanese currency is driven by a further stable increase in CPI expected by Japan's Finance Minister as well as a statement of BoJ's Head about an aggressive asset-buying policy which will be followed until the country reaches the target inflation (2%).
At the same time, the euro improved vs the US dollar to 1.2339. Yet, the upturn is restrained as insiders are also paying attention to the coming election in Italy to take place in early March.
The sterling also improved reaching 1.3985 against the greenback.
The AUD-USD rate decreased to 0.7843 with similar negative dynamics recorded in NZD-USD – 0.15% down to 0.7291.