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.
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August 27, 2021
EUR/USD 1.1740 GBP/USD 1.3711 USD/CAD 1.2696 AUD/USD 0.7243 USD/JPY 110.26 USD/CNH 6.4838 USD/ILS 3.2284 USD/MXN 20.3837 USD/CHF 0.9193 USD/INR 73.6825 USD/BRL 5.2440 USD/SGD 1.3522 USD/DKK 6.3336 USD/SEK 8.7146 USD/NOK 8.8116
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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