The dollar rallied in N.Y. on Tuesday, taking it cue from Fed chair Powell’s inaugural congressional testimony, which was upbeat on the outlook, and saw the market price in 3 rate hikes this year. Yields rose, while Wall Street headed lower on the prospects of further tightening. The DXY shot up to nearly three-week highs of 90.49, after opening around 89.90. EUR-USD fell from opening highs near 1.2315 to a lows of 1.2222. USD-JPY meanwhile, rallied to 107.67 from 106.95 lows. USD-CAD printed highs over 1.2760, while GBP-USD bottomed under 1.3860.
[EUR, USD]