Will the dollar hold on to its last highs after Powell?

The dollar continued to grow as expected for the fourth day in a row. Yet, another escalation of the trade conflict forces investors to seek asylum, although the speech of the Fed chairman can drastically change the course direction.

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The recent criticism of the Fed by US President Donald Trump has raised concerns that the Central Bank may reconsider further policy tightening. Powell's speech will be the highlight for the markets today. The American is trading in a very narrow range as they wait for the speech. Although in recent weeks, the dollar has been under pressure from signs that the Fed may slow down the pace of rate hikes amid a slowdown in global growth, peak corporate incomes and trade conflicts, it manages to keep close to highs. It should be ready to increase the volatility of the dollar.

Investors also need to pay attention to the growing hostility towards the regulator on the part of Trump, who said that the policies of the Central Bank are detrimental to the economy. Another important event will be the meeting of Trump and his Chinese counterpart Xi Jinping, where they plan to discuss trade disputes. While Trump's position - a deal or new tariffs - supports the dollar.

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