EUR/USD nears Fibo support on dollar strength fxstreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fxstreet.com Daily Mail and Mail on Sunday newspapers.
Dec 17, 2020 05:02 GMTFXStreet News
EUR/USD trades near 1.2210 versus 1.2190 in Asia.
Powell’s dovish comments on inflation continue to weigh over the greenback.
EUR/USD looks set to extend Wednesday’s gains as the US dollar remains on the offer, courtesy of the Federal Reserve President Jerome Powell’s dovish tone on inflation.
The pair is currently trading at 1.2210, representing a 0.11% gain on the day, having printed a bullish close on Wednesday.
Powell said Wednesday that there are significant disinflationary pressures worldwide, and inflation will take time to rise above the 2% target. Not only does the Fed foresee a slow rise in inflation, but it has also committed to keeping interest rates low for sometime after inflation crosses above 2%. In other words, rate hikes are unlikely to happen anytime soon, even though markets are betting on a swift global recovery on potential coronavirus vaccines.