The dollar was softer with DXY sub-92.50 this afternoon after a rather dovish Fed Chair Powell, who in his testimony reiterated that inflation was likely to remain elevated in the coming months before easing and expectations are broadly consistent with the Fed target, suggesting he is not concerned following yesterday’s hot CPI.
He also struck his dovish tone, noting monetary policy will deliver powerful support until the recovery is complete and the jobs market is still a ways off from progress needed to start the tapering process. However, the Fed chair did reiterate that while reaching the standard of "substantial further progress" is also still a ways off, participants expect that progress will continue and the Fed will continue discussions on progress towards goals in coming meetings and will provide advance notice before announcing any decision to make changes to our purchases.
The downside in the buck today may also be spurred from the reversal in yields with yields across the curve lower today, reversing some of yesterday’s moves.
He also struck his dovish tone, noting monetary policy will deliver powerful support until the recovery is complete and the jobs market is still a ways off from progress needed to start the tapering process. However, the Fed chair did reiterate that while reaching the standard of "substantial further progress" is also still a ways off, participants expect that progress will continue and the Fed will continue discussions on progress towards goals in coming meetings and will provide advance notice before announcing any decision to make changes to our purchases.
The downside in the buck today may also be spurred from the reversal in yields with yields across the curve lower today, reversing some of yesterday’s moves.