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Forex Stories: US Dollar Firm as Powell Rejects Negative Rates


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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