Reactions in USD due to comments by Fed members are possible, but really only by a few pips – Commerzbank

The market will pay particular attention to Fed Chair Jerome Powell’s comments. However, the US Dollar’s direction will not be determined by words, but by data, economists at Commerzbank report.

Data following much talk

Possible reactions in the Dollar due to comments by Fed members are possible at this stage, but really only by a few pips. 

Instead, focus should be aimed at the US inflation data due for publication on Tuesday. If inflation continues towards the Fed’s target that would be a convincing argument in favour of possible rate cuts and thus also Dollar losses.