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Dollar dives as Powell hints at pause in rate hikes.

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Dollar dives as Powell hints at pause in rate hikes.

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It was a topsy-turvy end of the week for the greenback as it rallied on a strong Non-Farm Payrolls release before being sold off on the back of dovish comments from Fed Chairman, Jay Powell.

The monthly jobs report showed an increase in employment for the month of 312k, its highest number since the 313k shown in March’s report. Wage growth also beat forecast with a monthly uptick of 0.4% reported however countering these good numbers was an unexpected increase in the level of unemployment which went from 3.7% to 3.9%. The dollar reacted positively to the numbers with the greenback gaining around half a cent against the pound and the euro. The gains were quickly unwound though as Fed Chairman, Jay Powell issued a dovish message on the path of 2019 interest rate hikes saying the central bank would be “patient” with further tightening of monetary policy. The comments came at the American Economic Associations annual meeting in Atlanta where Powell was joined by his predecessors, Janet Yellen and Ben Bernanke to discuss the state of the economy. EUR/USD pushed back up through 1.14 on the news with USD/JPY coming close to falling below 108. Stock markets in the States also rallied on the news having been hammered over recent months on the back of Trumps trade offensive.


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