This week's Dollar was flat after falling sharply last week against several other major world currencies such as the Euro, Pound, Australian Dollar and New Zealand Dollar. This week's market focus was on the testimony of Federal Reserve chairman Jerome Powell today.
Jerome Powell will present the latest performance of the US economy to Congress, especially in relation to the current inflation rate. He is expected to assure that the FEDS will not change any current interest rates even though inflation is expected to increase which will cause the USD to continue to fall.
At 3:55 AM ET (0755 GMT), the Dollar index rose 0.01%, an indicator that measures the value of the USD against the other 6 major world currencies.
Pairs like GBP / USD have continued to rise since last year and continue into this year. An increase of 0.2% this week and is currently at around 1.40800, an increase of 3% this month alone. The GBP has also been supported by positive sentiment since the United Kingdom government started the Covid-10 vaccination program causing confidence in the U.K. economic recovery to soar among investors.