Dollar drops as Powell releases dovish stand on bond tapering

30.08.2021 - Davydova Maria
Dollar drops as Powell releases dovish stand on bond tapering

The dollar opened the trading week with a poor performance on Monday morning in Asia. This came after a dovish statement on bond tapering from the United States’ Federal Reserve Chairman Jerome Powell during the Jackson Hole symposium on Friday.

The U.S. Dollar Index that measures the greenback against other major currencies declined 0.06% to 92.640 by 12:01 AM ET (4:01 AM GMT).

The USD/JPY pair dropped 0.06% to 109.76.

The AUD/USD pair slid 0.10 % to 0.7303, while the NZD/USD pair was down 0.08% to 0.6999.

The USD/CNY pair shed 0.05% to 6.4678, with Caixin Manufacturing Purchasing Managers Index (PMI) due on Wednesday.

The GBP/USD pair nudged 0.04% higher to 1.3769.

Powell stated that the Fed is likely to begin reducing stimulus measures before the end of 2021, but did not provide a timeframe. However, he reiterated that the central bank is not rushing the interest rate hike.

Investors are now expecting the U.S. nonfarm payroll on Friday for clues on the start of asset tapering.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?