The dollar rose and European shares fell on Wednesday as traders scaled back expectations of an aggressive cut in U.S. interest rates in July, while Wall Street rose on hopes of a China-U.S. trade breakthrough at the G20 summit later this week in Japan.
Gold fell 1% after Federal Reserve Chairman Jerome Powell said on Tuesday the U.S. central bank is “insulated from short-term political pressures,” suggesting policymakers would not bow to pressure from President Donald Trump to sharply cut rates.
Trump said Powell was doing a “bad job” and he called on the central bank to lower rates so the United States can compete with countries that he said are devaluing their currencies.
A pullback in the Japanese yen and Swiss franc was limited as traders remain jittery about a resolution to the U.S.-China trade spat. Some bids for both safe-haven currencies persisted amid tensions between Iran and the United States.
via Reuters
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza
Latest posts by Alfonso Esparza (see all)
- US dollar Gets Retail Sales Boost - 07/16/2019
- Oil Higher on Lower Inventory Expectations Despite Less Supply Disruption Risks - 07/16/2019
- JP Morgan Chief Optimistic About US Economy - 07/16/2019