This Tuesday, August 22, the dollar American experienced a slight decline. This move was attributed to increased appetite for riskwhich was driven by strong earnings mainly in the technology sector of Wall St. However, the fluctuation margins remain tight in anticipation to the next Jackson Hole Symposium organized by the Federal Reserve.
In that sense, the dollar indexwhich evaluates the performance of the dollar against a basket made up of six different currencies, it presented a decrease of 0.2%, standing at 103,042. Despite this decline, the currency remains in close proximity to the peak reached last Fridaysituated in 103.68. This level had not been observed. since June 12.
Jackson Hole: the look of the market in the week
The resistance of theNasdaq Composite Index during the first session of the week, against the rise of 10-year bond yields to new highs in a decade, has boosted risk sentiment this tuesdayto the detriment of the dollar, considered by many to be the safe haven.
However, losses are minimal as traders are still waiting for a speech from Jerome Powelll, Fed Chairman at the Jackson Hole Symposiumwhich will be crucial in the movements of the operators.
The market will be aware of itself, the head of the Fed believes that it will be necessary further tightening of monetary policy to reduce inflation or whether sufficient progress has been made to maintain rates unchanged.
“As a last resort, it seems too soon for the Fed to sound the alarm on inflation and the dollar is likely to maintain its gains,” ING (AS:INGA) analysts said in a note.
ECB: Lagarde’s words are also expected
EUR/USD rises 0.2% to 1.0917, with the president of the European Central Bank, christine lagardealso scheduled to speak on Jackson Hole on Friday, and your comments will be carefully scrutinized by the operatorswho will look for clues about the central bank’s next move in September.
Inflation has begun to recede in the eurozonea, but still well above the central bank’s 2% targetwhile the region’s economy has been broadly stagnant for the past three quarters, suggesting barely positive GDP growth in 2023.
The ECB expects the eurozone economy to grow 0.9% this year and 1.5% next yearbut these forecasts could be subject to downward revisions.
the pound sterling rises after net borrowing figures GBP/USD rose 0.2% to 1.2783, helped by data showing Britain borrowed less than expected in July, raising chances for Chancellor Jeremy Hunt to boost the economy country stagnant.
The country’s public sector net borrowing rose to £3.48bn in July, considerably below £17.11B in the previous month and £17.03B expected.
Elsewhere, USD/JPY fell 0.2% to 145.91, with the yen recovering from a nearly 10-month low against the dollar and traders wary of intervention after levels around 146 prompted buying for part of Japanese officials last September.
USD/CNY eased to 7.2854 as the yuan recovered from a nine-month low after a series of strong daily midpoint fixes by the People’s Bank of China.
The currency was also seen benefiting from dollar sales by major Chinese state banks, as the government seeks to curb further yuan weakness.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
