Weekly Roundup: US dollar boosted by hawkish Fed comments
Amy Richards August 29th 2023 - < 1 minute read
The US dollar endured notable volatility last week, trending upwards overall.
The safe-haven ‘greenback’ initially wavered higher as an improving market mood and rising US Treasury yields pulled the currency in different directions.
As with the Eurozone and UK releases, the US PMIs printed worse than expected, prompting further turbulence in the US dollar in the middle of the week.
Towards the latter part of the week, the ‘greenback’ gained ground as the Federal Reserve’s Jackson Hole Symposium began. A drop in US jobless claims helped boost Fed bets as the forum got underway.
On Friday, Fed Chair Jerome Powell delivered his speech at Jackson Hole. Powell hinted at further rate hikes, sending the US dollar higher.
This week could bring more USD volatility, with high-impact data releases scheduled throughout the session.
An expected uptick in the Fed’s preferred measure of inflation – the core PCE price index – on Thursday could see the ‘greenback’ climb.
However, a forecast cooldown in the non-farm payrolls report on Friday may see USD end the week on a sour note.
Written by
Amy Richards