- Pound gains momentum across the board during Powell’s presentations.
- US dollar turns negative, stocks trim losses.
The GBP/USD rebounded sharply after the first comments from Jerome Powell and climbed to 1.4113, reaching the highest level since 2018. The move higher took place amid a decline of the US dollar.
Fed’s Powell mentioned that the economy is a long way from employment and inflation goals. He offered so fur no surprises in its semi-annual presentation at the Congress. The central bank continues to promise to maintain rates near zero for a long time until full employment and inflation exceeds 2% for some time.
The greenback turned negative after the first comments, and US stocks rebounded. Powell now is answering questions from lawmakers. The DXY slide from 90.25 back to the 90.00 area. US yields pulled back. The 10-year dropped from 1.38% to 1.34%, weakening the greenback.
The pound gained momentum not only versus the US dollar but also against the euro. EUR/GBP dropped below 0.8620, reaching a fresh one-year low. The pound's positive trend remains intact, supported by expectations the UK economy will be the first to fully reopen in Europe.
Technical levels
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