FX Update: The USD posted fresh lows
FX Update: The USD posted fresh lows against most of the main currencies as Fed Chairman Powell's testimony yesterday, where he signalled a 25 bp rate cut with the caveat that the Fed has the tools needed and could use them "aggressively" if necessary, continued to resonate. The narrow trade-weighted USD index (DXY) extended to a six-day low at 96.87, while EUR-USD rose to a six-day high at 1.1280 and USD-JPY posted a six-day low at 107.86. The U.S. currency saw a similar similar magnitude of decline against other currencies before settling above lows. In the mix has been an unexpected upward revision to June German HICP, to 1.5% y/y from 1.3% y/y, which bolstered EUR-USD. News that Iran tried to intercept a British tanker in the Strait of Hormuz (the UK government claimed that its navel ship HMS Monrose saw off three Iranian vessels with "verbal warnings") saw front-month WTI crude prices spike above $60.0, the first time above this level since late May. Focus today will centre on the second part of Powell's Congressional testimony.