In his Congressional testimony yesterday, Jerome Powell made it clear that it’s reasonable to expect a 25 basis point cut at the end of this month. FOMC meeting minutes also showed that policymakers think stimulus would be needed soon. This has caused the dollar to drop to five-day lows.
Despite positive Non-Farm Payroll data last week, Powell’s speech took a dovish tone, pointing to ‘broad’ global weakness and uncertainty over trade tensions.
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