Weekly Roundup: US dollar trends higher on Fed bets and risk aversion
Amy Richards August 21st 2023 - < 1 minute read
A risk-off market mood lifted the safe-haven US dollar on Monday as fresh worries about China’s embattled property sector swirled.
The next day saw the market mood improve slightly, capping USD’s upside. Stronger-than-forecast US retail sales simply added to market optimism, keeping the American currency on the back foot.
The ‘greenback’ enjoyed newfound success midweek, following the publication of the Federal Reserve’s latest meeting minutes. Policymakers struck a broadly hawkish tone, thereby boosting USD.
An upbeat tone in markets saw the US dollar trim these gains on Thursday, although a drop in jobless claims cushioned the downside.
Sentiment soured again on Friday, however, leading the ‘greenback’ to end the week on a positive note, having zigzagged higher over the course of the week.
The US dollar could be fairly muted through the first half of this week ahead of the Federal Reserve’s Jackson Hole Symposium, which starts on Thursday.
Markets will be watching the annual gathering carefully – particularly a speech from Fed Chair Jerome Powell on Friday afternoon – hoping for any hints as to the US central bank’s future plans for monetary policy.
Written by
Amy Richards