U.S. Dollar Lower Before Fed Chair Jerome Powell's Senate Hearing
January 10 2022 - 11:25PM
RTTF2
The U.S. dollar depreciated against its major counterparts in
the Asian session on Tuesday along with treasury yields, as
investors await testimony from Federal Reserve Chair Jerome Powell
for more hints on timing and the pace of tightening of monetary
policy.
In prepared remarks for his confirmation hearing before the
Senate, Powell said that the economy is expanding at its fastest
pace in many years and the labor market is strong.
The Fed chief asserted that the central bank will deploy its
tools to support the economy and to prevent higher inflation from
becoming entrenched.
The post-pandemic economy is likely to be different in several
aspects, Powell said, adding that the central bank must adjust to
those changes and keep pace with an ever-evolving economy.
U.S. consumer inflation data is due on Wednesday, which is
expected to reach a four-decade high of 7 percent in December.
Fed Vice Chair nominee Lael Brainard will testify before the
Senate on Thursday.
U.S. treasury yields dropped, with the benchmark 10-year yield
touching 1.76 percent.
The greenback weakened to 1.1349 against the euro from
yesterday's close of 1.1325. If the dollar slides further, 1.15 is
possibly seen as its next support level.
The greenback declined to its lowest level since November 4
against the pound, at 1.3619. The GBP/USD pair had ended
yesterday's trading session at 1.3575. Further fall in the currency
may challenge support around the 1.37 level.
The greenback edged lower to 0.9249 against the franc from
Monday's closing value of 0.9271. The dollar is seen finding
support around the 0.90 region.
The USD/JPY pair touched as low as 115.12. Next key support for
the currency is likely seen around the 112.00 level.
The greenback was down against the loonie, at 1.2634. Immediate
support for the currency is likely seen around the 1.24 level.
The greenback pulled back to 0.7193 against the aussie and
0.6779 against the kiwi, after rising to 0.7167 and 0.6754,
respectively in early trades. The greenback is poised to challenge
support around 0.74 against the aussie and 0.74 against the
kiwi.
Looking ahead, at 10 am ET, Jerome Powell will testify before
the Senate Banking Committee on the renomination to chair the
Federal Reserve Board of Governors for a second term.
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