US Dollar Dips as Powell Speech fails to Move Markets

Forex

Summary:

US Dollar's recovery has slowed after US Federal Reserve Chairman Jerome Powell gave a speech without any comments on monetary policy or guidance. While some big names have been disappointing, some larger retailers have shown increasing profits, indicating that the current high-interest rate environment is straining people's finances. This puts the US at greater risk of falling into a recession than the rest of the world.

Traders are eagerly awaiting the speeches of the Fed members scheduled for later on Wednesday to gain insights into the current concerns of the Fed, especially regarding the possibility of a recession. As far as economic data is concerned, all the significant reports have already been released and analyzed.

The US Dollar remains flat as investors await key data:

• The Mortgage Bankers Association (MBA) has released its weekly Mortgage Applications index. The previous index showed a decrease of 2.1%, but last week it went up by 2.5%.

• The CME Group's FedWatch Tool indicates a 90.4% chance that the Federal Reserve will keep interest rates unchanged at its meeting in December.

• US Federal Reserve Chairman Jerome Powell did not comment on monetary policy or the markets.

• The US Wholesale Inventories came out at 0.2%, a slight increase from the previous figure of 0%.

• Asian equities are currently slightly negative, while Europe and the US are somewhat positive. The negative sentiment is due to better-than-expected earnings from the top three US retail discounters, which suggests that US consumers are looking for cheaper alternatives instead of paying full price for goods and services.

• The US Treasury aims to allocate a 10-year note in the markets at around 18:00 GMT.

• At the end of the US session, two Fed speakers are expected to speak: John Williams from the New York Fed at 18:40 GMT and Philip Jefferson from the Board of Governors of the Fed at 21:45 GMT.

• The benchmark 10-year US Treasury yield is currently at 4.55%, recovering from last week's volatility.

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US Dollar Dips as Powell Speech fails to Move Markets

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