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Forex- Dollar Steady While Sterling Dips Ahead of Powell, Carney Speech

Published 2018-05-25, 05:17 a/m
© Reuters.  The dollar was steady on Friday
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Investing.com - The greenback was flat on Friday while the pound inched down as investors looked ahead to testimony from Fed Chair Jerome Powell and Bank of England Governor Mark Carney.

Both Federal Reserve Chairman Jerome Powell and BOE Governor Mark Carney are expected to participate in a panel discussion of "Financial Stability and Central Bank Transparency" at the "Sveriges Riskbank Conference: 350 Years of Central Banking - The Past, The Present and The Future" in Stockholm, Sweden at 9:20 AM ET (13:20 GMT).

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up slightly by 0.03% to 93.75 as of 5:17 AM ET (9:17 GMT).

The dollar was also held back by Fed meeting notes on Wednesday that suggested that while another interest rate hike is warranted, the central bank would accept inflation rising above its target rate for a while.

This was a surprise to investors, who expected that the Fed will increase interest rates and tighten monetary policy in the coming months. The Fed raised rates in March and is expected to raise rates twice more, with a 95% chance of a hike in June.

The dollar was up against the safe haven yen, with USD/JPY rising 0.26% to 109.52.

Meanwhile sterling was slightly lower after data showed the annual UK economy was unrevised at 1.2%. GBP/USD fell 0.10% to 1.3365. The euro was also higher, but was held back by economic and political worries in Europe. The EUR/USD inched up 0.01% to 1.1719.

Elsewhere, the Australian dollar was higher, with AUD/USD up 0.11% to 0.7584 while NZD/USD rose 0.10% to 0.6933.

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