The US dollar was initially riding higher on Powell’s hawkish comments but Trump’s tariffs sent it down. The upcoming week features a full buildup to the Non-Farm Payrolls, four rate decisions, but politics will likely remain in the headlines as well. Here are the highlights for the upcoming week.
Fed Chair Jerome Powell made his first testimony on Capitol Hill and eventually voiced a hawkish stance. He noted that since the dot-plot was last published in December, quite a few things point to stronger growth and inflation. In his second appearance, he said that four hikes in 2018 would still count as gradual. The current dot-plot of the Fed stands at three hikes this year. This sent the USD higher across the board. However, Trump later came out with the announcement of tariffs on steel and aluminum, sending stocks and bond yields lower. The greenback continued gaining ground against commodity currencies but lost ground to the euro and the safe-haven yen. The pound had issues of its own: an EU draft on the future relationship with the UK had a very tough stance and triggered angry responses. The pound suffered from this acrimony. Politics also start the week, which is packed with events.
Updates:
Leave A Comment