· The dollar eased on Tuesday as investors awaited a slew of economic data this week and Federal Reserve Chairman Jerome Powell’s testimony, which could determine whether the U.S. currency’s recovery from a three-year low has more room to run.
The dollar’s index against a basket of six major currencies fell 0.1 percent to 89.728 . The greenback, however, is still 1.7 percent above a three-year trough near 88.25 set on Feb. 16.
The focus this week is Powell’s first congressional testimony, at a time when investors are nervous over the pace of U.S. monetary tightening as it unwinds years of stimulus.
· Powell will probably sound optimistic on the economic outlook, but stress patience in assessing whether inflation will head higher, said Roy Teo, investment strategist for LGT Bank in Singapore.
“The dollar is unlikely to get a major lift after Powell’s speech,” Teo said.
· International Monetary Fund Managing Director Christine Lagarde said on Tuesday the global economy was showing broad-based growth, but the landscape was shifting with heightened risks of trade disputes, monetary policy normalisation and technological change.
· Japanese Economy Minister Toshimitsu Motegi said on Tuesday that he expected consumer spending to continue rising but that he would monitor the impact of accelerating inflation on consumer sentiment.
Japan’s overall consumer price index rose in January at the fastest pace since July 2014, due partly to an increase in prices for fresh vegetables, data last week showed.
· China’s plan for President Xi Jinping to remain in office indefinitely has sparked social media opposition, drawing comparisons to North Korea’s ruling dynasty and prompting a Hong Kong pro-democracy activist to accuse it of creating a dictator.
The social media reaction late on Sunday quickly saw China swing into a concerted propaganda push by Monday, blocking some articles and publishing pieces praising the party.
The ruling Communist Party on Sunday proposed to remove a constitutional clause limiting presidential service to just two terms in office, meaning Xi, who also heads the party and the military, might never have to retire.
· Oil prices on Tuesday erased earlier gains as investor concerns about rising U.S. oil output offset signs of stronger demand and faith in the ability of OPEC production curbs to curtail supply.
U.S. West Texas Intermediate (WTI) crude for April delivery CLc1 was down 15 cents, or 0.2 percent, at $63.76 a barrel by 0532 GMT. The contract on Monday rose to its highest since Feb. 6 at $64.24.
Brent crude LCOc1 in London was down 10 cents, or 0.2 percent, at $67.40 a barrel.
Reference: Reuters, CNBC
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