- Investors set their eyes on trade developments awaiting a statement from Jerome Powell later in the day.
- The U.S-China trade has affected the global financial markets and increased the risk of recession for some economies as global trade declines.
- Market watchers turn their attention to a statement from Fed Chair Jerome Powell before a congressional committee later today.
On Wednesday, the U.S dollar hovered a near one-month high as investors set their eyes on trade developments awaiting a statement from Jerome Powell later in the day.
In the highly anticipated Trump’s speech on Tuesday, he said a trade deal with China was close but failed to give more details. He disappointed investors who had expected more on negotiation’s progress.
Trump also rattled some investors when he threatened to impose more tariffs on China if they would not reach a trade agreement. He also reprised public criticism of the Fed for failing to cut rates deeply enough.
The U.S and China have imposed tariffs on each other’s goods in dispute, which has affected the global financial markets and increased the risk of recession for some economies as the global trade declines.
Market watchers turned their attention to a statement from Fed chair Jerome Powell before a congressional committee at 1600 GMT. The initial public hearing in Trump’s impeachment inquiry will also begin an hour earlier at 1500 GMT.
The U.S.D index was higher at 98.24 by 08:55 GMT after hitting a one month high of 98.30 overnight.
The dollar was 109.12 against the Japanese yen, not far below the five-and-a-half month high of 109.48 it hit last week.
The USD scaled a month-high against the euro overnight and traded marginally below that level at 1.1007 on Wednesday.
The Aussie was pinned at 0.6842 by weak yet largely expected wage data.
The GBP held steady at 1.2834, after a brief boost from the Brexit party’s decision not to contest Conservative-held seats at the December’s election.
Meanwhile, the New Zealand dollar rallied more than1% after the Reserve Bank of New Zealand left rates on hold overnight, saying it saw no urgency in easing the policy again after two rate cuts this year.