The U.S. dollar stabilized in early European trade Thursday near a one-month low after the first day of Federal Reserve Chair Jerome Powell\u2019s semi-annual testimony to Congress, while sterling edges lower ahead of the latest Bank of England meeting.<\/p>\n
At 01:50 ET (05:50 GMT), the\u00a0Dollar Index<\/a><\/span>, which tracks the greenback against a basket of six other currencies, edged higher to 101.707, trading just above its recent one-month low.<\/p>\n Federal Reserve Chair\u00a0Jerome Powell<\/a><\/span>\u00a0appeared before the House Financial Services Committee of Congress on Wednesday. This was the first day of his two-day semi-annual testimony, and he stayed on message, stating further U.S.\u00a0rate increases<\/a><\/span>\u00a0are “a pretty good guess” if the economy continues in its current direction.<\/p>\n However, he declined to commit to a rate hike in July, like some had expected, while his stance was contradicted by other Fed members calling for an extended pause in the central bank\u2019s rate hike cycle.<\/p>\n \u201cMy baseline is that we should stay at this level for the rest of the year,” said Atlanta Federal Reserve President Raphael Bostic, in a published essay earlier in the day. \u201cIf we simply press on with additional rate hikes, we could needlessly drain too much momentum from the economy.”<\/p>\n Powell is set to speak again later Thursday, this time to the Senate Banking Committee.<\/p>\n Elsewhere,\u00a0GBP\/USD<\/a><\/span>\u00a0fell 0.1% to 1.2756, not far from last week\u2019s one-year high of 1.2849, ahead of the latest policy-setting meeting of the\u00a0Bank of England<\/a><\/span>.<\/p>\n The U.K. central bank is widely expected to raise interest rates for a 13th time in a row later Thursday, but the chances of a hefty 50-basis-point hike were lifted after the country\u2019s May\u00a0headline inflation index<\/a><\/span>\u00a0held at 8.7% on Wednesday, the highest of any major economy.<\/p>\n EUR\/USD<\/a><\/span>\u00a0edged lower to 1.0988, not far removed from the recent one-month high, with European Central Bank officials maintaining a hawkish stance even after the\u00a0central bank<\/a><\/span>\u00a0lifted interest rates last week.<\/p>\n “Inflation to me is like a greedy beast and we do have to fight against this very greedy beast,” Bundesbank chief Joachim Nagel told a conference. “As inflation fighters we have to be very stubborn because inflation is so stubborn.”<\/p>\n Elsewhere, the risk-sensitive\u00a0AUD\/USD<\/a><\/span>\u00a0fell 0.5% to 0.6762, with the Aussie dollar coming under pressure from uncertainty over Chinese stimulus measures and commodity demand.<\/p>\n USD\/JPY<\/a><\/span>\u00a0dropped 0.1% to 141.75, with the Japanese yen trading close to six-month lows as the Bank of Japan maintains a loose monetary policy, while\u00a0USD\/CNY<\/a><\/span>\u00a0traded flat at 7.1795, with the Chinese yuan hovering close to six-month lows.<\/p>\n Source: https:\/\/www.investing.com\/news\/forex-news\/dollar-steadies-after-powells-testimony-sterling-awaits-boe-meeting-3110697<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar stabilized in early European trade Thursday near a one-month low after the first day of Federal Reserve Chair Jerome Powell\u2019s semi-annual testimony to Congress, while sterling edges lower ahead of the latest Bank of England meeting. At 01:50 ET (05:50 GMT), the\u00a0Dollar Index, which tracks the greenback against a basket of six […]<\/p>\n","protected":false},"author":1,"featured_media":630,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpautop"],"translation":{"provider":"WPGlobus","version":"2.10.10","language":"fr","enabled_languages":["en","nl","es","sv","fr"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"nl":{"title":false,"content":false,"excerpt":false},"es":{"title":false,"content":false,"excerpt":false},"sv":{"title":false,"content":false,"excerpt":false},"fr":{"title":false,"content":false,"excerpt":false}}},"yoast_head":"\r\nMixed messages from the Fed<\/strong><\/h3>\n
Sterling edges lower ahead of BOE meeting<\/strong><\/h3>\n
ECB must remain \u201cstubborn\u201d<\/strong><\/h3>\n