Dollar rally reverses on dovish Powell; payrolls coming up

The US dollar gave back much of its gains from last week, as appetite for risk recovered and Chair Powell’s much-anticipated speech today provided some relatively dovish guidance on the path for Fed interest rate hikes. Nonetheless, we think that this will prove a temporary setback, and that the greenback will appreciate a bit further in final months of the year as the prospects for Fed policy normalisation improve and US bond yields rebound by more than those in other major economies.
Jonas Goltermann Senior Markets Economist
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