Currency Market Analysis

Jul 12, 2019 | Currency Market Analysis

Global Themes

USD slips further stays focused on Fed

The US dollar fell as markets remained focused on a likely Federal Reserve rate cut next month.

This week’s testimony from the Federal Reserve chair Jerome Powell confirmed that the US central bank is clearly considering lower official interest rates.

In overnight commentary that broadly reflected the previous day’s discussions, Powell said: “I think many of my colleagues on the FOMC have come to the view that a somewhat more accommodative monetary policy may be appropriate.”

Twice as nice

In other markets, the British pound slipped as worries about Brexit continued to weigh.

The Canadian dollar remained strong after this week’s Bank of Canada decision signalled a more positive assessment than expected.

China numbers

Today’s focus turns to China with trade balance numbers due around 11.00am.

Chinese growth has recently slowed and these numbers will be seen as key.

On Monday, more Chinese data is due, with industrial production and fixed asset investment to be released.

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