Jerome Powell’s Statement Has Slightly Boosted the Dollar
US dollar rises after Jerome Powell’s speech. But overall, the currency markets are quiet and are generally staying in consolidation. Federal Reserve Chair Jerome Powell said in his first semi-annual monetary policy testimony to the House Financial Services Committee that the US central bank would likely move forward with a gradual increases in interest rates. Powell promised to continue to strike a balance between avoiding an overheated economy and bringing inflation back near the Fed’s 2% target, while also giving an upbeat outlook for the American economy. He also added that, despite recent volatility, financial conditions remained accommodative.
Orders for durable goods in the US, which are meant to last at least three years, fell in January. The Commerce Department said that durable-goods orders fell 3.7% last month. Economists had forecast a 2.4% decrease. Excluding the volatile transportation sector, orders decreased 0.3% in January. So-called core capital-goods orders fell by 0.2% from a month earlier.
German inflation cooled last month. Data from the Federal Statistics Office showed, that the consumer price index rose 1.4% last month, compared with the last year. Prices rose by 0.5% from a month earlier. Economists had expected annual inflation to increase by 1.5% and monthly inflation to rise by 0.5%.
Eurozone business climate fell to 1.48 in February, down from 1.54 but beat expectation of 1.47. Economic confidence decreased to 114.1, down from 114.7 and beat expectation of 114.0. Industrial confidence fell to 8.0, down from 8.8, met expectations. Services confidence increased to 17.5, beat expectation of 16.3. Consumer confidence was finalized at 0.1.