FX Brief: Powell Nonplussed by Decent Data

Matt Weller
By :  ,  Head of Market Research

  • US data: CPI (June) came in generally as expected at 1.6% y/y, though “core” CPI (excluding energy and food costs) beat slightly at 2.1% y/y vs. 2.0% eyed. Separately, initial jobless claims dropped to 209k, signaling continued strength in the labor market.
  • Fed Chairman Powell reiterated his dovish comments from yesterday, citing global uncertainties from trade policy and noting that the central bank must not fall behind the curve like the BOJ.
  • President Trump resumed his criticism of China, noting that the country has not been buying enough agricultural products from the US. So far, there has been little in the way of progress in trade talks since the “truce” at the G20 nearly a month ago.
  • The Swiss franc was the weakest major currency on the day; the New Zealand dollar was the strongest.
  • USD/JPY bounced off its intraday lows, though resistance still looms.


Related tags: Forex

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