Disappointing data and comments from the Federal Reserve Chair Jerome Powell were weighing on the dollar yesterday afternoon, but the greenback appears to have rebounded a little this morning.
Speaking yesterday, Powell told investors that interest rates were being left as they are and that any tapering of monetary policy would not happen until the job market saw more of an improvement.
US GDP missed expectations, growing by 6.5% rather than the predicted 8.5%. Initial jobless claims fell by 24,000 to 400k in the week ending 24 July, above market predictions of 380k.
Nevertheless, the dollar is benefitting this morning from its safe-haven status amid Covid-19 worries. Markets are now awaiting Eurozone GDP and US PCE inflation data.
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