The dollar is growing, despite the soft tone chosen by the Fed. The dollar quickly recovered after it had experienced some short-term losses the day before, traders did not expect policy tightening and focused on fairly confident comments from the head of the Fed Jerome Powell regarding the prospects for the economy.
Recall that the dollar retreated back after an unexpectedly sharp decline in the ISM production index to 52.8 points, and the lower forecast for US inflation prompted investors to sell the US currency. However, the situation changed when Jerome Powell stated that the factors negatively affecting inflation are "temporary", and he sees no reason to change the rate in any direction. As a result, the dollar was half a percentage point higher than the nightly lows against a basket of major currencies, while the yield on 10-year Treasury bonds was seven basis points higher.
"Powell sees the glass as half full," said Konstantinos Antis, head of ADSS research in Dubai. The most important thing in the speech of the Fed head was the moment when he made it clear that he saw no reason for lowering interest rates. However, markets estimate the probability of lower interest rates by the end of the year at 64%. The euro returned to the level of 1.1198 dollars after it reached 1.1265 dollars at night. But the American fell against the yen, 111.55 yen.
