Meanwhile, the speech by the head of the Federal Reserve, Jerome Powellin Jackson Hole will be scrutinized for any indication that an economic slowdown could alter the Federal Reserve’s (Fed) strategy.
“While the market may be oscillating between inflation and recession, central banks are not. They seem to focus almost exclusively on inflationsaid Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
In this framework, the Federal Reserve funds futures operators are valuing at 61% the possibility that the Federal Reserve will raise rates by another 75 basis points at its September meeting, and at 39% the probability of a increase of 50 basis points.
The dollar index rose 0.13% to 108.67, remaining just below the 20-year high of 109.29 hit on July 14.
The greenback could give up some gains on Friday if Powell expresses any concerns about the impact of monetary tightening.
Similarly, new orders for U.S.-made capital goods rose in July, but the momentum has slowed from previous months, suggesting that business equipment spending may struggle to rebound after contracting last quarter.
Other data released on Wednesday showed the US economy probably added 462,000 more jobs than had been estimated in the 12 months to March.
For its part, the euro fell 0.06% against the US dollar to settle at $0.9961, after hitting a 20-year low of $0.99005 on Tuesday.
In addition, the European Union’s single currency has been hurt by growth concerns as the region grapples with an energy crisis.
Source: Ambito
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