US Federal Reserve Chair Jerome Powell was in the spotlight on Wednesday, testifying on the Semi-Annual Monetary Policy Report before the Senate Banking Committee. Powell reaffirmed his commitment to tame inflation pressures, and acknowledged the risk of recession, though had little to say on the future of interest rate hikes. Major US equity indexes rose on the session, while US yields navigated lower across the curve. The safe-haven US pushed lower, and EUR/USD consequently caught a relatively healthy bid.
The EURUSD pair advanced for a third consecutive day on Wednesday, closing at around 1.0572. The greenback started the day with a firm footing, but demand for the American currency decreased as the hours went by.
His words added some pressure on the US currency, but not enough to put it on a bearish path. On the other hand, Wall Street managed to post modest gains, maintaining the positive tone while heading into the close.
On Thursday, S&P Global will publish the preliminary estimates of June PMIs for the EU and the US. The latter will also publish Initial Jobless Claims for the week ended June 17, while Fed’s Powell will repeat its testimony before a different commission.
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