- Pound gains momentum across the board during Powell’s presentations.
- US dollar turns negative, stocks trim losses.
The GBP/USD rebounded sharply after the first comments from Jerome Powell and climbed to 1.4113, reaching the highest level since 2018. The move higher took place amid a decline of the US dollar.
Fed’s Powell mentioned that the economy is a long way from employment and inflation goals. He offered so fur no surprises in its semi-annual presentation at the Congress. The central bank continues to promise to maintain rates near zero for a long time until full employment and inflation exceeds 2% for some time.
The greenback turned negative after the first comments, and US stocks rebounded. Powell now is answering questions from lawmakers. The DXY slide from 90.25 back to the 90.00 area. US yields pulled back. The 10-year dropped from 1.38% to 1.34%, weakening the greenback.
The pound gained momentum not only versus the US dollar but also against the euro. EUR/GBP dropped below 0.8620, reaching a fresh one-year low. The pound's positive trend remains intact, supported by expectations the UK economy will be the first to fully reopen in Europe.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains in the red below 0.6500 on US-China trade risks
AUD/USD remains under selling pressure below 0.6500 in the Asian session on Tuesday, reversing some losses. Trump's threatened additional 10% tariffs on China, weighinmg heavily on risk sentiment and the China-proxy Australian Dollar while lifting the haven demand for the US Dollar.
USD/JPY drops below 154.00 as US Dollar surge stalls
USD/JPY drops below 154.00 in Tuesday's Asian trading. Fresh tensions surrounding US-China trade war underpin the safe-haven US Dollar while the Japanese Yen catches a fresh bid on PM Ishiba's calls on businesses to hke wages. Fed Minutes are next in focus.
Gold: Trump tariffs threat lifts XAU/USD, focus shifts to Fed Minutes
Gold price has staged a solid comeback so far this Tuesday’s trading after hitting a six-day low at $2,605 in early dealings. Gold buyers look forward to the Minutes of the US Federal Reserve’s (Fed) November meeting for the next push higher.
TRON Foundation becomes the largest investor in Donald Trump's World Liberty Financial
Donald Trump-backed DeFi platform, World Liberty Financial, received new support on Monday after Tron founder Justin Sun announced that the Tron Foundation had invested $30 million into the president-elect's platform, making them its largest financial supporter.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.