DXY DIPS TO OVER ONE- MONTH LOW ON POWELL COMMENTS; ADP JOBS REPORT WEAKER THAN EXPECTED

Published on Mar 07, 2024 10:41

The US dollar index is staying pressured on Thursday, extending previous day loses at around a month low following Federal Chair Powell�s statement at the congressional testimony that policy rate is likely at its peak for this tightening cycle and if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year. Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2 percent, he added. However, Powell reiterated that the Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. Meanwhile, a report released by payroll processor ADP showed private sector employment in the U.S. rose by slightly less than expected 140,000 jobs in February after climbing by an upwardly revised 111,000 jobs in January. The dollar index that measures the greenback against a basket of currencies is quoting at 103.20, down 0.12% on the day. Among the basket currencies, EURUSD and GBPUSD were staying along the flat line awaiting further cues from ECB monetary policy and US economic data slated for the day.