U.S. Dollar Climbs On Powell's Hawkish Remarks
May 18 2022 - 3:45AM
RTTF2
The U.S. dollar moved up against its most major opponents in the
European session on Wednesday, following comments from Federal
Reserve President Jerome Powell that the U.S. central bank is
determined to keep raising interest rates until there is clear and
convincing evidence that inflation moves down.
Speaking at a Wall Street Journal event on Tuesday, Powell said
that the Fed won't hesitate to raise rates beyond neutral levels
until prices start falling back towards healthy levels again.
The Fed Chair added that "there could be some pain involved to
restoring price stability," but the labor market would remain
strong, with low unemployment and higher wages.
Solid economic reports on retail sales and industrial production
released overnight helped ease concerns about economic growth.
Investors await U.S. housing starts and building permits data
due out at 8:30 am ET for more direction.
The greenback rebounded to 0.9985 against the franc and 1.2371
against the pound, up from an early low of 0.9923 and near a 2-week
low of 1.2501, respectively. Next key resistance for the greenback
is likely seen around 1.02 against the franc and 1.21 against the
pound.
The greenback edged up to 1.2852 against the loonie and 1.0494
against the euro, rising from near a 2-week low of 1.2795 and a
1-week low of 1.0564, respectively hit in early deals. The
greenback is likely to face resistance around 1.30 against the
loonie and 1.02 against the euro.
In contrast, the greenback held steady against the aussie, after
rising to 0.6996 from Asian session's 1-week low of 0.7047. The
pair had closed Tuesday's deals at 0.7027.
The greenback that recovered to 0.6339 against the kiwi in the
previous session wobbled in subsequent deals. At Tuesday's close,
the pair was valued at 0.6355.
The greenback was steady against the yen, after having dropped
to 128.94 at 12:30 am ET. The pair traded at 129.36 at Tuesday's
close.
Looking ahead, Canada inflation data and U.S. building permits
and housing starts, all for April, will be featured in the New York
session.
US Dollar vs CHF (FX:USDCHF)
Forex Chart
From Apr 2024 to May 2024
US Dollar vs CHF (FX:USDCHF)
Forex Chart
From May 2023 to May 2024