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Dollar Slips After Powell’s Dovish Comments at Congressional Testimony

After a short bullish run that started at the end of last week, the US dollar fell lower on Thursday following Fed Chair Jerome Powell’s first day of congressional testimony. On Wednesday, Powell all but confirmed a rate cut by the Fed in July in order to support the US economy.

At the time of writing, the US dollar index DXY is trading at 96.86. Powell talked about the weakness in the overall global economy as one of the reasons for the recent weakening in the US economy. He also mentioned the trade disputes that the Trump administration has with several countries around the world, especially China, as another key factor affecting the economic outlook in the US.

After the release of a strong NFP report last Friday, the sentiment for a rate cut had eased in the markets. However, yesterday’s dovish comments from Powell have reignited the likelihood of aggressive rate cuts by the Fed.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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