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.
A negative vibe lingered across financial markets on Friday, after President Donald Trump’s vow to impose severe tariffs on imports of steel and aluminum sparked fears of a global trade war.
The Dollar Index gained for the second session in a row on the heels of Fed Chair Powell’s first congressional testimony.
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.
Today is Jerome Powell’s first of two congressional testimonies and the new Fed Chair is likely to not deviate much from the recent game plan. However, in doing so he might come off as more dovish.
The dollar is under threat of losses once again, with the Greenback at time of writing currently trending lower against all of its G10 counterparts, with the exception of the Canadian dollar.
The euro finished the session lower after a delayed reaction to slightly hawkish FOMC Minutes. The Minutes themselves did not bring much of a surprise.
The euro has had a tough two-session run since edging a new swing high early Friday at 1.25795. The price has reversed about 1.7% ahead of tomorrow’s FOMC Minutes and Thursday’s ECB Minutes
With the U.S. out today, the forex markets have been fairly quiet. The U.S. dollar has managed to rebound against some currencies amid profit-taking from the bears after its recent falls.