Forex Stories: US Dollar Firm as Powell Rejects Negative Rates


U.S. Federal Reserve Chairman Jerome Powell stated that the central bank would not push interest rates below zero...


On Wednesday the ICE U.S. Dollar Index gained 0.2% on day to 100.20. Federal Reserve Chairman Jerome Powell said they are not considering negative interest rates, despite a highly uncertain outlook and significant downside risks.

EUR/USD dipped 0.3% to 1.0820. Official data showed that the eurozone's industrial production dropped 11.3% on year in March (-12.5% expected). Germany's government said it aims to fully reopen borders by June 15.

GBP/USD fell 0.2% to 1.2236, posting a three-day decline. Official data showed that U.K. first-quarter GDP contracted 2.0% on quarter (-2.6% expected) and 1.6% on year (-2.2% expected). U.K. industrial production declined 4.2% on month (-5.6% expected) and manufacturing production slid 4.6% (-6.0% expected).

Source: GAIN Capital, TradingView

USD/JPY slipped 0.1% to 107.03.

NZD/USD plunged 1.3% to 0.6000. The Reserve Bank of New Zealand said it has decided to expand the Large Scale Asset Purchase programme potential to 60 billion New Zealand dollars from a previous limit of 33 billion New Zealand dollars, while keeping its benchmark rate unchanged at 0.25%. The central bank added: "The Monetary Policy Committee is prepared to use additional monetary policy tools if and when needed, including reducing the OCR further."

USD/CAD edged up 0.1% to 1.4092. Canada's manufacturing sales for March will be reported later today (-4.5% on month expected).

Meanwhile, AUD/USD lost 0.2% to 0.6456, down for a third straight session.

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