FOREX-Dollar Climbs After Warsh Comments, Poised for Weekly Gain
The dollar index stood at 99.18, as traders awaited Kevin Warsh’s Jackson Hole remarks and priced in at least one U.S. rate hike this year.
- On Friday, the U.S. dollar held firm near a one-week high as investors awaited Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium.
- Warsh hinted that the Federal Reserve may need to hike interest rates if policymakers doubt inflation is returning to the 2% target, acknowledging financial conditions do not appear restrictive.
- Expectations for at least a 25 basis point rate hike at the Fed's September meeting jumped to about 50% following the speech, up from about 35% before.
- Eugene Epstein, head of trading at Moneycorp, expressed skepticism, saying the market will view Warsh's commentary "with a giant grain of salt" if the Fed doesn't follow through.
- Meanwhile, Tokyo's annual core inflation accelerated for the third straight month, prompting traders to price in a 68% chance that the Bank of Japan hikes rates next month.
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Business Times
Kitco NEWSDollar heads for weekly gain as Warsh remarks awaited
The US dollar held firm near a one-week high against major peers on Friday (Aug 28), as investors stood on the sidelines ahead of Federal Reserve chairman Kevin Warsh’s speech at the Jackson Hole symposium. Read more at The Business Times.
Hawkish Fed Chair Warsh Boosts the Dollar and Sinks Gold
rallied to a 2-week high on Friday and finished up by +0.61%. The dollar jumped on Friday on hawkish comments from Fed Chair Warsh, who warned inflation isn’t meaningfully slowing and vowed that policymakers will return inflation to their 2% target. The chance of a Fed rate hike at next month’s…
Dollar Finishes Slightly Higher Ahead of Fed Chair Warsh
The dollar index (DXY00 ) rose to a 1-week high on Thursday and finished up by +0.03%. The dollar found some support on Thursday after weekly US jobless claims unexpectedly declined, signaling strength in the labor market. Also, hawkish comments on Thursday from Kansas City Fed President Jeff Schmid and...
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