Forex: The Dollar remains stable, Powell’s speech guarded

The u.s. dollar remained stable on Tuesday morning, after the federal Reserve chairman, Jerome Powell, has indicated that the central bank would maintain probably its rates unchanged.

The dollar index was unchanged at 98,225 at 10h05.

The Fed is “strongly committed” to its inflation target of 2 percent, ” said Powell in a speech Monday. However, he noted that inflation was well below this level by 2019, despite three interest rate cuts over the last four months.

At its October meeting, the central bank has lowered its key interest rate by a quarter percentage point to a range of 1.5% to 1.75%.

The chinese ministry of Commerce, Liu He, talked with the american representative of the Trade, Robert Lighthizer, and the secretary of the Treasury, Steven Mnuchin, Tuesday morning.

“The two sides discussed the resolution of the fundamental problems of common interest, have reached a consensus on how to solve the related problems (and) have agreed to stay in touch on the outstanding issues with a view to agreement, phase 1”, indicates the press release in chinese language.

The phone call was a follow up to a previous meeting at the beginning of the month, that the ministry had called “constructive”.

At the same time, the chinese newspaper Global Times, supported by the State, reported Monday that the two parties were “very close” to a trade agreement.

The yen has lost value as a result of the rise in asian shares and european today. The pair USD/JPY has risen 0.1% to 108,92.

The pair GBP/USD fell by 0.1% to 1,2879 after jumping in the previous session, while the british Prime minister, Boris Johnson promised to come up with an agreement on the Brexit to Parliament before Christmas.

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