The dollar rose against most major currencies as markets assessed the Federal Reserve Chairman’s recent remarks at the Jackson Hole Forum.
In the annual address at the Jackson Hole Forum, Federal Reserve Chairman Jerome Powell gave a strong and highly visible signal about the imminent rate cut, but did not clearly specify when it would be.
In his annual speech at the Jackson Hole Forum, Powell said: “It’s time to adjust the policy, the trend is clear, and the timing and pace of rate cuts will depend on incoming data, evolving forecasts, and the balance of risk.”
He pointed to significant progress already being made in controlling inflation, saying the Fed can now shift its focus equally to the other side of its dual mission: to make sure the economy remains fully employed.
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Powell stressed that rising inflation was a ‘global phenomenon’, as a result of rapid increases in demand for goods, disruption of supply chains, weak supply of jobs in the labor market, and sharp rises in commodity prices.
FIDWATCH showed market expectations for a 25 basis point cut by the Federal Reserve during the September meeting to 63.5% from 92.3% a month ago, while expectations for monetary easing rose 50 basis points to 36.5% from 3.8%.
In terms of trading, the dollar index rose by 19:45 GMT by 0.2% to 100.8 points, and recorded a high of 100.9 points and a low of 100.5 points.
Canadian Dollar
By 19:56 GMT, the Canadian dollar rose 0.2% to 0.7421.
Australian Dollar
AUD/US at 19:57 GMT fell 0.3% to 0.6777.
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