The dollar has steadied this morning following a sharp rally yesterday, which was sparked by comments from Fed Chair Jerome Powell.
Testifying in front of the US Senate Banking Committee yesterday, he signalled his support for quicker tapering of the Federal Reserve’s huge bond-buying programme due to high inflation. He also said that the word ‘transitory’ should stop being used to describe high inflation and instead explained that he expects it to ease over time.
Powell’s testimony will continue today. The jobs report on private payrolls will also be released ahead of the all-important non-farm payrolls on Friday.
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