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Investing.com – (updated at 18:45 ET)
The American dollar rose to 104.309 against a basket of foreign currencies, up by 0.37%, after Jerome Powell’s speech at the Jackson Hole symposium.
Jerome Powell said that the Fed is ready for more hikes, stressing that monetary policy will be maintained at strict levels for as long as possible to ensure a sustainable decline in inflation.
dollars this morning
The US dollar rallied in early European trade on Friday, rising to a two-month high, as traders braced for hawkish comments from Federal Reserve Chairman Jerome Powell at Jackson Hole.
At 12:00 Riyadh time, the index, which tracks the greenback against a basket of six other currencies, was up 0.22% at 104.21, off the 104.25 level seen earlier in the day. Which constituted the highest level since June 7.
The index rose about 1% this week, on its way to rising for the sixth week in a row.
Dollar rises ahead of Powell’s speech
The dollar rose on Thursday after data showed that the number of Americans filing for unemployment benefits fell last week, adding to a series of economic releases that helped ease fears of an impending recession in the United States.
However, it is still above the Fed’s target, and traders are concerned by the Fed chair’s indication that rates need to be held at higher levels for longer to overcome the threat of inflation during his speech later in the session.
The US central bank pushed short-term interest rates aggressively higher for more than a year to stem the worst surge in inflation in decades, and raised the benchmark to a range of 5.25%-5.50% last month.
The next Fed meets in September, and although the markets are not expecting a rate hike, the state of the economy suggests that the Fed may have to do more in terms of monetary policy.
The euro is sliding with the recession of the economy in Germany
The currency pair fell 0.2% to 1.0784 after the German economy stagnated in the second quarter compared to the previous three months, as data showed for the three months through July, down year on year.
The President of the European Central Bank is also scheduled to deliver a speech in Jackson Hole later on Friday, and traders will be looking for more clues on monetary policy ahead of the upcoming meeting of the central bank in September.
Sterling weakened despite improving UK consumer sentiment
The currency pair fell 0.2% to 1.2574, dragged down by a stronger dollar, even after the index rose to -25 in August from a three-month low of 1.2574. Data earlier on Friday showed a -30 rise in July, the biggest rise since April, as lower inflation made Britons less pessimistic about the outlook for their personal finances.
On the other hand, the currency pair rose by 0.1% to 146.05, near the highest level in 10 months, the currency pair rose to 0.6421, but it is still close to its lowest level in nine months, while the currency pair rose by 0.1% to 7.2873, stable After a series of strong daily corrections at the midpoint of the People’s Bank of China.
The currency pair rose 2.6% to 26.444, with the Turkish lira giving up some of its huge gains in the previous session after the country’s central bank raised its key interest rate by 750 basis points more than expected to 25%, signaling an insistence on tackling a rebound as part of the plan. A broader shift in policy.
2023-08-25 14:47:00
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