The U.S. dollar index stands still, awaiting Powell’s second speech this week. Provided by Investing.com

Investing.com – In European morning trading on Wednesday (9th), the US dollar consolidated sideways, awaiting speeches by Federal Reserve Chairman Jerome Powell and other Federal Reserve officials to find more clues on monetary policy.

As of 18:12 Beijing time (06:12 a.m. ET), the U.S. dollar index futures, which measures the U.S. dollar against six trade-weighted major currencies, rose 0.01% to 105.459; the U.S. dollar index was flat at 105.59, having hit a level earlier this week Two-month low of 104.84.

Benchmark U.S. Treasury yields: The U.S. 10-year Treasury bond yield was at 4.555%, and the U.S. 20-year Treasury bond yield was at 4.877%.

h2 Powell will speak again/h2

The U.S. dollar suffered a sell-off last week as market confidence increased that the Federal Reserve would end its interest rate hike cycle. However, this week several Fed officials warned the market against complacency, triggering a rebound in the U.S. dollar. Philadelphia Fed President Harker said on Wednesday that “a cut in policy rates is unlikely in the short term.”

Meanwhile, as Federal Reserve Chairman Jerome Powell is scheduled to speak again on Thursday, market trading is likely to be light ahead of his speech. Previously, although he attended an event on Wednesday, he did not talk about monetary policy.

Analysts at ING said, “The Fed’s speech remains the focus today, and given that there are not many important economic data releases in the United States, this is likely to be the case for the rest of the week.”

h2 ECB officials will also speak/h2

European Central Bank Chief Economist Philip Ryan and Bank of England Chief Economist Hugh Peel will also speak at separate events, and given the current economic situation, any comments they make may affect the market.

The euro fell 0.10% against the dollar to 1.0696, after weakening in the previous session as retail sales in the euro zone fell 0.3% month-on-month in September.

GBP/USD rose 0.15% to 1.2300, having hit a seven-week high above 1.24 earlier this week.

h2 The yuan is under pressure, China releases CPI and PPI data/h2

The U.S. dollar rose 0.08% against the onshore renminbi to 7.2856; the U.S. dollar rose 0.11% against the offshore renminbi to 7.2952. China’s 10-year government bond yield was at 2.669%.

Previous data showed that China’s CPI and PPI both declined in October.

At the same time, {{3}USD/JPY}} rose 0.08% to 151.09, once again close to the high after the Bank of Japan issued a dovish signal last week.

Therefore, traders still need to pay attention to whether the Japanese government will intervene in the currency market. The yen exchange rate is currently close to the level at the beginning of the “lost decade” in the early 1990s.

AUD/USD rose 0.05% to 0.6404 after a dovish signal from the Reserve Bank of Australia triggered a sharp decline in the Australian dollar this week.

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Compiler: Liu Chuan