The USD’s struggle to take on 90 levels on the US Dollar Index continues. This morning we continue to see a softer USD ahead of Fed Chairman Powell’s first testimony to congress. Traders will screen through his talk for clues of rate hikes and his views on inflation.
This morning we are expecting data for economic confidence from the EZ and we also have German CPI this morning. In the afternoon focus should entirely shift to Powell’s testimony but we also have data for US Durable goods orders and consumer confidence amongst others.
Powell will likely be optimistic with regards to economic growth, but ask for patience on the outlook of inflation.
EURUSD remains buoyant given a weaker USD but we are expecting caution ahead of Italy going to the polls this weekend, and as German parties are deciding on a coalition. EURUSD is currently at 1.238.
Asia took a positive handover from the US close as the major equity indices headed higher, at the time of writing major equity inidces in Asia were mostly higher with the exception of the Hanng Seng and the mainland Shangai composite.
