All things considered, this was a very quiet session for the euro. The currency traded in a range of less than a penny in the face of a deadlocked Italian election, the formation of a coalition government in Germany and President Trump’s trade tariff talk.
The Canadian dollar has been the worst performer among the major currencies today, continuing its recent poor run of form. The Loonie has been undermined amid concerns over planned US tariffs on steel and aluminum.
The U.S. dollar sold off this afternoon, losing about 0.5% from session highs on newly imposed tariffs on aluminum and steel imports. This news crowded the headlines and overshadowed Fed Chair Powell’s congressional testimony. The euro traded to a session low of 1.2166 as Powell began, but reversed sharply in an outside-bullish reversal session.
New Federal Reserve Chairman Powell set a strong tone in his first of two congressional hearings. While he didn’t steer widely off course, he was positive on the U.S. economy saying it had strengthened recently.