By Peter Nurse
Investing.com – The U.S. dollar edged lower in early European trade Wednesday, retreating after a relatively dovish speech from Fed chair Jerome Powell raised hopes the central bank may soon ease monetary policy.
At 03:10 ET (08:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.3% lower at 103.005, after also slipping 0.3% in the previous session.
The foreign exchange market had expected Powell to push back against easing rate expectations, particularly after the surprising strength of Friday’s U.S. jobs report.
Instead, while Powell acknowledged that interest rates might need to move higher than expected if economic conditions remained strong, he also reiterated that he felt a process of disinflation was underway.
That said, dollar losses are limited and the index remains not far off Tuesday’s one-month high after the nonfarm payrolls had…