July 2, 2024
U.S. dollar dips as Fed's Powell's dovish comments offset upbeat jobs data
“Fed chair Jerome Powell let his dovish plumage show. In our view, he put a September rate cut firmly on the table by acknowledging 'significant progress' in bringing inflation down, and pointing to the 'two-sided risks' facing policymakers as labor markets begin to cool," says Karl Schamotta, chief market strategist at Corpay in Toronto. "This is triggering an unwind in the surge in short-end yields that took place after last week's presidential debate, and is forcing an altitude adjustment in the dollar."