EUR/USD continues to edge higher within the American session.
US Dollar Index stays deep within the negative territory below 92.50.
FOMC Chairman Jerome Powell is delivering the Fed’s semiannual Monetary Policy Report.
After staying below 1.1800 during the primary half the day, the EUR/USD pair capitalized on the renewed USD weakness and staged a decisive rebound. As of writing, the pair was up 0.5% on a day to day at 1.1833.
DXY loses traction on Powell’s remarks
In his prepared remarks for delivery at the congressional hearing on Wednesday, FOMC Chairman Jerome Powell reiterated that the Fed’s monetary policy will still support the economic recovery. Moreover, Powell adopted a comparatively dovish tone by noting that the work market remains a ways faraway from the progress needed to start asset tapering.
When the Fed released the prepared statement within the early American session, the USD faced strong selling pressure and therefore the US Dollar Index was last seen losing 0.4% on the day at 92.40.
FOMC Chairman Powell delivers semiannual Monetary Policy Report – live stream.
Meanwhile, the US Bureau of Labor Statistics reported that the Producer price level (PPI) jumped to 7.3% on a yearly basis in June from 6.6% in May, compared to analysts’ estimate of 6.8%.
Earlier within the day, the info from the euro area showed that Industrial Production contracted by 1% in May but this print had little to no impact on the shared currency’s performance against its major rivals.