Weekly Roundup: US dollar hits multi-month highs following Fed decision
Amy Richards September 25th 2023 - < 1 minute read
The safe-haven US dollar also wavered in a narrow range through the first part of last week’s session amid a shifting market mood and ahead of the Federal Reserve’s interest rate decision.
Wednesday then saw USD suffer losses as an improving market mood dampened demand for the ‘greenback’.
However, a ‘hawkish hold’ from the Fed on Wednesday evening sparked a rally in the US dollar. While the bank left rates untouched, it hinted at another hike in future and pushed back its projections for rate cuts.
After hitting multi-month highs, USD trimmed its gains on Thursday as investors sought to cash in on the currency’s strength.
An uncertain market mood and mixed PMI releases saw the ‘greenback’ wobble at the end of the week, though it ended the session stronger overall.
This week, the US dollar has started the session mixed once again as investors await higher-impact data later in the week.
An expected decline in durable goods orders could dent USD on Wednesday, with signs of economic weakness potentially dampening Fed bets.
The spotlight, however, is on the core PCE price index on Friday. The Fed’s preferred inflation indicator is expected to ease, which could see markets scale back bets on further policy tightening.
Written by
Amy Richards