Powell, Mnuchin in spotlight at Congressional committee

OFX Daily Market News

Posted by OFX

USD – United States Dollar

Federal Reserve Chairman Jerome Powell sits down today with Treasury Secretary Steven Mnuchin before the House of Representatives Financial Services Committee.

Followers can expect much of the same rhetoric. The path forward in uncertain. Full recovery is unlikely until people feel safe. The Fed is committed to using its full range of tools. According to The Economist, America has gone all out. The fiscal stimulus is worth 15% of GDP and the Fed’s balance-sheet has swollen by trillions of dollars of asset purchases.

The stimulus has made a positive impact. The Conference Board Consumer Confidence Index increased to 98.1 in June, up from 85.9 May.

The US dollar has reversed recent gains on the positive news this morning with its dropping against the Canadian dollar, Great British pound and the euro.

Key Movers

Haven currencies were the days big losers as the JPY and CHF both retreated amid an equity led risk on move. While price action across currency markets was largely muted throughout trade on Monday the rebound in the S&P 500 did prompt a small risk on correction forcing the Yen and Franc near half a percent lower as the promise of sustained Federal Reserve support continues to prop up equity markets.

The Great British pound fell through trade on Monday as concerns regarding Brexit and Britain’s ability to fund planned fiscal infrastructure programs forced the below 1.23 to intraday lows at 1.2252.

Attentions today remain squarely affixed to the evolving fight against COVID-19 as risk continues to drive direction and underlying fundamentals are largely ignored.

Expected Ranges

USD/CAD: 1.36 – 1.369 ▼

GBP/USD: 1.226 – 1.238 ▼

EUR/USD: 1.119 – 1.126 ▼

USD/AUD: 1.447 – 1.462 ▼


Posted by OFX

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