The dollar fell slightly on Wednesday, moving away from its peak in a month, reached the day before once morest the euro, while the head of the American Federal Reserve Jerome Powell did not convince the markets of his desire to raise rates .
The greenback yielded 0.18% to 1.0746 dollars for one euro (around 10:25 GMT).
Investors were still digesting Mr. Powell’s intervention the night before, when he said: “if the economic data were to continue to be stronger than expected (…) we would certainly raise rates further”.
A promise of a rate hike that brings him closer to the “hawks”, nickname for supporters of a strict monetary policy, “but not as hawkish as some market participants expected”, summarizes Carol Kong, analyst at CBA.
The dollar had benefited from a much stronger-than-expected US jobs report since Friday, and investors expected Powell to be more determined than he was on Wednesday.
Analysts point out that the Fed boss still believes a “soft landing” for the US economy is possible, which would avoid recession, which does not seem possible if the Fed continues to hike rates for too long.
APS
