US FX Handover: Dollar Doves Backtrack on Powell
Matt Weller, CFA, CMT May 1, 2019 3:44 PM
- The Federal Reserve left interest rates unchanged, tweaked its IOER, and made modest changes to its monetary policy statement.
- In his press conference, Fed Chairman Powell characterized low inflation as “transitory” and noted that the central bank does not “see a strong case for moving in either direction.”
- These comments were less dovish than many traders were hoping, prompting the dollar to recover to the top of the relative strength charts along with the British pound and Swiss franc.
- In other US news, the ADP non-farm employment report beat expectations at 275k but the ISM Manufacturing PMI report came in soft at 52.8.
- The kiwi was the weakest major currency today in thinner, holiday trade.
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