The dollar was weaker against the pound but stronger against the euro, and other currencies, after the speech from Federal Reserve Chairman, Jerome Powell yesterday. As well as providing continued monetary support for the US economy, Powell revealed that the Fed would allow inflation to go above the 2% target for some time by leaving interest rates low for a longer period.
This announcement indicates that monetary policy will probably be softer for some time as the Fed take a more relaxed approach to inflation and focus on restoring the economy.
Later today, Personal Income and Personal Spending figures will be released for the US.
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