The dollarUS records a rise this friday august 25reaching his level highest in two months. This increase is due to the fact that the operators position themselves in advance of the comments of hawkish tone Issued by the Chairman of the Federal Reserve, Jerome Powellat the symposium on jackson hole during the day.
The Index of Dollarwhich traces the evolution of dollar against a basket of six different currencies, registers an increase of 0.2%, standing at 104,107. This value is close to the previously observed 104.25 level, which mark the highest point since June 7.
During this week, the index has experienced an increase in almost 1%which represents its sixth consecutive week of rise.
Dollar: its strengthening before Powell’s speech
On the eve there was a dollar strengthening after data revealed a drop in the number of claims for benefits for unemployment filed by US citizens over the past week. This is in addition to a series of economic reports that have helped alleviate concerns about a recession imminent in USA.
However, inflation continues above the target set by the fedwhich has led operators to remain cautious regarding the possibility that Powell consider it necessary to maintain interest rates elevated for a longer period in order to counteract this threat.
It is expected that Powell make these observations during your speech at the symposium on jackson hole.
At the meeting of the fed is scheduled for September And while a rate hike is not expected at that time, the state of the economy suggests that the Fed may have to implement more measures in terms of monetary politics.
Dollar against other currencies
The pair EUR/USD experiences a fall of 0.2% to reach 1.0784, in response to the stagnation of the german economy in the second quarter compared to the previous three months. The data indicates that there was no growth in the three months to July, with annual growth slowing to 0.2%.
On the horizon, the president of the European Central Bank, Christine Lagardeis scheduled to deliver a speech also in jackson hole during Friday. Traders will look to get more indications on monetary policy ahead of the next central bank meeting in September.
While, the pound sterling, in the GBP/USD pair experiences a decrease of 0.2%, standing at 1.2574. This happened despite the stronger dollar, even after the GfK Consumer Sentiment Index rose to -25 in August from a three-month low of -30 in July.
This increase is the largest since April, according to data published last week. The decline of inflation it helped make British citizens less pessimistic about their personal financial prospects.
In other markets, the pair USD/JPY rises 0.1% to 146.05, hovering near a 10-month high. The pair AUD/USD sees a slight increase to 0.6421, although it remains near nine-month lows. For its part, the USD/CNY pair registered an increase of 0.1%, standing at 7.2873. This situation represents a stabilization after a series of daily adjustments marked by the People’s Bank of China.
The pair USD/TRY registers an increase of 2.6%, standing at 26,444. This represented a reversal of part of the significant gains obtained in the previous session by Turkish Liraafter the country’s central bank increased its key interest rate by 750 basis points, bringing it to 25%. This move signals a new determination to address rising inflation as part of a broader shift in economic policy.
Source: Ambito
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