FOREX
The US dollar index, which tracks the performance of the greenback against a basket of major currencies, edged higher in early Thursday trading but remains near the yearly lows reached in the previous session.
Renewed pressure on the dollar followed the release of the latest FOMC minutes, which revealed a dovish tone among Federal Reserve policymakers. The minutes indicated that many committee members are leaning toward cutting the central bank's fund rate at the September meeting, with some even advocating for a cut as early as the end of August.
This shift in focus, following the success in bringing inflation close to target levels, now centres on preventing a hard landing for the US economy. This dynamic is weighing on treasury yields and softening the dollar. In this context, all attention is now on the Fed's Jackson Hole symposium and Jerome Powell's speech there on Friday.
The Fed Chairman is expected to provide further insights into the central bank's monetary policy, particularly regarding the size of the anticipated September rate cut and potential additional cuts before the year's end.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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