Jerome Powell reiterated his dovish stance towards interest rates yesterday, keeping the dollar low. He indicated that the decision to cut rates could be based more on continuing uncertainties, rather than deterioration of outlook. Most other Fed speakers also seem supportive of a cut.
The dollar was still in a weak position yesterday following increasing expectations of a rate cut at the end of July. There were also some indications that the trade wars are starting to have an effect in the US, with consumer prices edging up in June.
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