The U.S. Dollar index advanced against a basket of six major currencies by 0.042 percent to end Wednesday’s session in the green at 94.84 after the Federal Reserve Chairman Jerome Powell confirmed the expectations of more than two interest hikes this current year, adding that the U.S. is on the right track for steadying growth rates.
On Wednesday, after Powell’s testimony and declaring the reinforcement of a solid economic outlook, the U.S. Dollar witnessed gains as investors cashed in which helped to support the U.S. Dollar. Furthermore, the growth in U.S. Treasury yields could increase rates. Therefore this will participate in lifting the U.S. Dollar.
Meanwhile, a weaker Euro supported the Greenback where the single currency dropped by 0.18 against the U.S. Dollar to close the session in the red at 1.16382 EURUSD.
Furthermore, in the United Kingdom, the Sterling dropped against the Greenback by 0.35 percent to end the session lower at 1.30681 GBPUSD at the close.
Moreover, the factors that affected and pressured the Sterling were many, data on the British inflation was unsuccessful to increase to the expectations. Furthermore, the market expected that the interest rate in August would rise by 25 basis points, while the actual fell to 72 percent from 80 percent, causing a downfall to the currency.
Also, Britain will leave the bloc in March 2019. Therefore many investors are hoping to see Britain strengthening its relations and trade ties with the European Union.
In terms of the safe-haven assets, the Japanese Yen fell against the Greenback by 0.02 percent to settle down at 112.842 USDJPY. Moreover, the Swiss Franc also declined around 0.10 percent against the U.S. Dollar to end the session lower at 0.99891 USDCHF at the close.
Elsewhere in Canada, the Canadian Dollar fell against its U.S. counterpart for two sessions in a row to lose around 0.16 percent to trade lower at 1.31678 USDCAD at the close, pressured by a stronger U.S. Dollar and a weaker commodity prices.
Regarding the Kiwi Dollar, the currency rose against its U.S. counterpart by 0.16 percent to close in the green at 0.67929 NZDUSD. To continue with, the Aussie Dollar witnessed gains by around 0.13 percent to settle higher at 0.73973 AUDUSD after the Australian Bureau of Statistics released the Employment Change showing that the number of employed people in Australia surged by 37.5K to reach 50.9K. The increase in employment will generally indicate a rise in consumer spending, therefore motivating economic growth and thus supporting the Aussie Dollar.