According to Jinshi, analysts said that the yen is climbing against the dollar, and the euro has also narrowed its losses against the dollar to around 0.1%. This shows that traders are turning from the political noise in France to clearer signals from the US economy. At the same time, there are signs that Powell will take a more dovish tone when he testifies in Congress this week. The Australian dollar has erased its losses since the opening of Monday against the US dollar. Considering that the Federal Reserve is expected to cut interest rates at least once this year and the Reserve Bank of Australia is firmly adhering to a neutral to hawkish stance, many believe that the Australian dollar has a clear upward path. Traders predicted on Friday that the probability of a rate cut by the Federal Reserve in September was about 80%, so Powell may not need so many relatively dovish remarks to get them closer to fully digesting this expectation.
