Forex – dollar lower, in view of the speech of Powell

© Reuters. – The greenback dipped slightly Tuesday, but remain close to highs of two months, as investors await the speech of the officials of the federal Reserve to give more clues on the monetary policy in the coming months.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.13% to 96,727 at 11: 00 am ET (16: 00 GMT).

Traders will focus primarily on the Fed chairman Jerome Powell, who will speak at the Forum on the rural policy of the Hope Enterprise Corporation in Mississippi at 12: 45pm (17: 45 GMT).

The speech of Loretta Mester, president of the Cleveland Fed, and Esther George, president of the Fed of Kansas City, are also on the agenda.

Expectations of a rate hike from the Fed this year are rapidly loosing ground, as the central bank has paused its rate tightening.

The dollar was higher against the yen and the refuge, with the USD / JPY has surged 0.62% to 110,38. Investors typically look for the yen as a safe-haven in times of economic stress or stress on the exchange.

Elsewhere, the pound has regained momentum, after having slipped to its lowest level in three weeks, after data showed that the Uk economy had slowed down in view of the Brexit. The british pound was boosted after the governor of the Bank of England, Mark Carney, has stated that a modest tightening of monetary policy should be sufficient for the central bank to achieve its inflation target. The GBP / USD rose 0.26% to 1,2882.

Elsewhere, the euro was higher, with EUR / USD up 0.2% at 1.1296.

In Australia, the AUD / USD rose 0.4% to 0,7089, while the NZD / USD rose 0.07% to 0,6735. The loonie is on the rise, with the USD / CAD down 0.3% at 1.3259.

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