FOREX-Dollar steady, euro recovers on better than expected data

Currency markets have been mostly driven in recent months by market perceptions of the different paces at which global central banks reduce pandemic-era stimulus and raise rates. Powell’s renomination supports the view that the Fed is likely to begin raising rates in mid-2022, after it winds down its bond purchase program. “Markets perceived the outcome as marginally hawkish, and futures now firmed up expectations for a hike in June from having been skewed toward July,” currency analysts at Brown Brothers Harriman said in a note on Tuesday.