Jerome Powell, Chairman of the Federal Reserve, concluded his two-day testimony before Congress and strongly hinted that the Fed will be cutting interest rates at the end of July. The question remains as to what degree. Will it be a 25 or 50 bps cut? In addition, we have reports and statements out from the IMF and ECB both stating that Europe is likely to continue to face challenging economic times ahead. Both institutions are advocating for more stimulus and the ECB is standing at the ready to cut rates further into negative territory and/or to launch another round of their version of QE. Elsewhere around the world, we continue to witness further deterioration in the fundamentals and there are hints that many other central banks will continue to cut interest rates or embark on a cutting-cycle. This is a new currency war in the making and it’s a race to the bottom.