{"id":154229,"date":"2019-08-26T09:30:57","date_gmt":"2019-08-26T13:30:57","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=154229"},"modified":"2019-08-26T08:43:07","modified_gmt":"2019-08-26T12:43:07","slug":"powell-talks-down-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/powell-talks-down-dollar\/","title":{"rendered":"Powell Talks Down Dollar"},"content":{"rendered":"
August 26, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

USD Recovers<\/strong><\/h2>\n

The US dollar has started the week on a firm footing following a late sell-off on Friday. The decline came in response to comments from Fed Chairman Powell.\u00a0Speaking at the Jackson Hole Symposium, Powell kept the prospect of further rate cuts very much alive. However, he noted the limited ability the Fed has to handle the downside impact from Trump\u2019s trade war with China<\/strong>. USD index trades 97.85 last, having found support at the 97.51 level again.<\/p>\n

EUR Weaker<\/strong><\/h2>\n

EURUSD has been back under pressure over the European morning on Monday in light of the recovery in USD.\u00a0This week, forex traders are waiting for the\u00a0release of German and eurozone CPI.<\/a><\/strong> Weak readings are expected to add further pressure to expectations that the ECB will ease at the upcoming September meeting. EURUSD trades 1.1112 last as stagnation between 1.1025 \u2013 1.1217 continues.<\/p>\n

GBP Holding On<\/strong><\/h2>\n

GBPUSD has been a little softer today also, weighed on by a recovery in USD.\u00a0Price has been slowly grinding higher, away from the 1.20 level, though remains very much corrective.<\/strong>\u00a0While below 1.2382, focus is on a further move lower eventually unless we see any positive Brexit headlines.<\/p>\n

SPX500 Recovers<\/strong><\/h2>\n

Risk assets have been rallying today despite the move higher in USD.<\/strong>\u00a0Powell\u2019s comments last week have reinforced the view that the Fed will ease again this year which, along with expectations for ECB easing, are helping keep equities underpinned. SPX500 trades 2872.25 last though remains capped by the 2941.01 level.<\/p>\n

Safe Havens Fall<\/strong><\/h2>\n

Safe havens have come under pressure today also in light of the recovery in risk appetite and a stronger US Dollar. Both JPY and gold have been lower against USD.<\/strong>\u00a0USDJPY trades 105.86 last, with price having rebounded strongly off the 105.07 level. XAUUSD trades 1530.60 last with price still above the 1522.75 level, for now, keeping focus on further upside.<\/p>

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Crude Rallies<\/strong><\/h2>\n

Oil prices have been higher today, despite the stronger USD.\u00a0A recovery in risk sentiment and growing optimism that the US and China will continue trade negotiations is helping keep price bid today.<\/strong>\u00a0Last week, the EIA reported a further drawdown in US crude stores which is also adding upside pressure. Crude trades 54.53 last though is still capped by the 56.76 level for now.<\/p>\n

AUD Bounces Back<\/strong><\/h2>\n

USDCAD is trading in the green today, though only slightly.<\/strong>\u00a0A stronger USD has been offset by the recovery in risk appetite and better oil prices, which is helping boost CAD. USDCAD trades 1.3305 last, with price sitting just atop the 1.33 level for now. However, momentum to the topside has waned following the initial burst above the level earlier in the month.<\/p>\n

AUDUSD has made a strong recovery today following an earlier move lower.<\/strong>\u00a0The sell-off stalled just ahead of the .6677 level and price has since reversed back above the .6758 level with better risk appetite helping offset a stronger USD.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex USD Recovers The US dollar has started the week on a firm footing following a late sell-off on Friday. The decline came in response to comments from Fed Chairman Powell.\u00a0Speaking at the Jackson Hole Symposium, Powell kept the prospect of further rate cuts very much alive. However, he noted the limited ability the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-154229","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=154229"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154229\/revisions"}],"predecessor-version":[{"id":154235,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154229\/revisions\/154235"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=154229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=154229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=154229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}