Dollar jumps on Fed Powell's renomination
|The greenback jumped against majority of its peers in New York morning and rose to a fresh 16-month high on news that U.S. President Joe Biden nominated Federal Reserve Chair Jerome Powell for a second four-year term.
Reuters reported Federal Reserve Chair Jerome Powell was nominated for a second four-year term by President Joe Biden on Monday, extending a tenure that began somewhat by chance, survived blistering criticism from former President Donald Trump, and now positions the ex-investment banker to finish the most consequential revamp of monetary policy since the 1970s. Lael Brainard, the Federal Reserve board member who was the other top candidate for the job, will be vice chair, the White House said.
Versus the Japanese yen, dollar traded with a firm bias in Asia and gained to 114.26 at European open. The pair then jumped in New York morning in tandem with US yields on news that Federal Reserve Chairman Powell has been nominated for a second term and hit an intra-day high at 114.95 near the close before stabilising.
The single currency met renewed selling at 1.1293 in New Zealand and retreated to 1.1261 at European open on usd's renewed strength. The pair then ratcheted lower in New York morning to a fresh 16-month trough at 1.1231 near the close on usd's broad-based strength on news of Fed Powell's renomination.
The British pound met renewed selling at 1.3459 in New Zealand and retreated to 1.3428 in Asian morning on usd's renewed strength. Despite rebounding to 1.3448 at European open n then 1.3449 at New York open, price later tumbled on broad-based usd's buying to an intra-day low at 1.3385 before stabilising.
In other news, according to Reuters the current surge in euro zone inflation is temporary because supply disruptions should fade as more people are vaccinated against COVID-19, European Central Bank policymaker Peter Kazmir said on Monday, repeating the ECB's official view on the matter. "(The) inflation surge (is) to (a) large extent temporary," he said on Twitter shortly before speaking at an event. "Supply chain bottlenecks should disappear gradually as vaccination increase(s)."
Data to be released on Tuesday:
New Zealand retail sales, Australia manufacturing PMI, services PMI, Japan Market Holiday, France Markit manufacturing PMI, Markit services PMI, EU Markit manufacturing PMI, Markit services PMI, Germany Markit manufacturing PMI, Markit services PMI, U.K. Markit manufacturing PMI, Markit services PMI, U.S. redbook, Markit manufacturing PMI, Markit services PMI and Richmond Fed manufacturing.
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