During early trades this morning in Asia, the US dollar traded lower as Jerome Powell indicated yesterday that the central bank might cut interest rates soon.
At 04:47 GMT, the U.S. dollar index was down by 0.2% to 96.507 against a basket of other currencies.
Though last week the US Bureau of Labor Statistics revealed a rather strong jobs report, the Fed’s chairman indicated that economic growth is still moderate while inflation remained relatively weak as well.
According to Powell, more jobs in the US does not mean a rise in wages. Consequently, inflation did not rise.
Fed’s Jerome Powell will appear before the Senate Banking Committee today to testifies on the economic outlook and recent monetary policy actions.
Meanwhile, both the USD/JPY and USD/CNY pairs dropped by 0.5% to 107.96 and 0.1% to 6.8643 respectively.
On the other hand, the AUD/USD pair rose by 0.3% to 0.6974.
Litecoin & Other Crypto Dropped
Litecoin saw its largest one-day percentage loss since September 2017 on Thursday. The coin at 04:27 GMT dropped by 20.79% to $98.669.
This sudden drop got the market cap of Litecoin down to $6.392B.
Over the past week, Litecoin lost around 16.34% in value. The coin was trading in a range of $98.6693 to $124.8277 for the past week.
The current price of Litecoin is still 76.51% down from its all-time high of $420.00.
Similarly, other major cryptocurrencies saw a sudden drop.
Bitcoin lost around 13.82% while Ethereum slipped by 14.73%.
Bitcoin and Ethereum’s market cap was last at $208.572B and $29.637B respectively.
Switzerland signs security cooperation deal with the UK
On Wednesday, Switzerland agreed to maintain a flow of information on terrorism and organised crime with the UK even after Brexit.
The Swiss Justice Minister Karin Keller-Sutter travelled to the UK to sign the agreement that would support policies and security cooperation.
According to an official statement, the UK and Switzerland want to maintain a good relationship on policy matters between the two countries.
If the UK leaves the European Union (EU) without a deal, all data from the British security services will be expunged from the EU database.
As such, Switzerland and other countries will no longer have access to these information. Hence, it is important to sign new deals and treaties between these countries for the long term relationship and cooperation.
Financial Events to watch for today
- 12:30 GMT – Core CPI (MoM) (Jun) [USA]
- 14:00 GMT – Fed Chair Powell Testifies [USA]