Dollar strength is disinflationary at the margins

Europen Central Bank (ECB) President Christine Lagarde, FOMC Chairman Jerome Powell and Bank of England (BOE) Governor Andrew Bailey speak on the policy outlook at the ECB’s annual Forum on Central Banking.

Key quotes

Powell: “Dollar strength is disinflationary at the margins.”

Powell: “We are working hard to get smarter about the supply side.”

Bailey: “We do not target foreign exchange rate.”

Bailey: “We are not surprised by the path of sterling.”

Market reaction

GBP/USD stays on the back foot after these comments and was last seen losing 0.55% on the day at 1.2115.

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