Financial markets await Powell speech later this morning

Financial markets await Powell speech later this morning

The Bloomberg Dollar Spot Index shot higher after two Fed governors suggested tapering of bond purchases should begin soon. FX traders and investors await Fed Chairman Jerome Powell’s speech later today. The price of oil climbed higher again today and is now up 11% from last week’s low.

“Education is not the learning of facts but the training of the mind to think.”

Albert Einstein
  • FX Rates
    August 27, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The US dollar rallied this morning as financial markets are now expecting the Fed to signal tapering to begin soon during the Jackson Hole Symposium which is concluding today. The PCE Deflator for July came in slightly higher at 4.2% and Personal Income much stronger with a 1.1% gain over prior month.

    GBP

    GBP/USD dipped over yesterday’s session, hitting lows of 1.3680 during Asia trading, as the dollar rallies ahead of today’s Jackson Hole meeting.

    EUR

    The euro is set to defend yet again the 1.17 support level as the dollar rallies in front of Fed Chairman’s speech later this morning. Economic data for the eurozone will take a backseat to Fed taper talk and the next month’s election in Germany.

    CAD

    The Canadian dollar weakened despite higher oil prices. The price of oil is charging higher and is now up 11% since lows of last week.

    ASIA/PACIFIC

    The Chinese renminbi weakened slightly vs. the US dollar as FX traders expect the Chinese central bank to ease monetary policy as the domestic economy slows.

    The Indian rupee gained on the US dollar as the central bank stopped buying dollars around the 74.10. The rupee immediately strengthened to below 73.70.

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Peter Compton
WRITTEN BY
Peter Compton

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