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HomeEconomyDollar pauses for respite ahead of Jackson Hole

Dollar pauses for respite ahead of Jackson Hole

Rae Wee

SINGAPORE (Reuters) – The U.S. dollar steadied slightly below recent highs on Wednesday as investors awaited news from the Federal Reserve and pondered weak U.S. data Could it slow

Disappointing U.S. services and manufacturing surveys released overnight and a slump in new home sales last month lifted the dollar from 29 The euro hit a new high for the year, but it’s not particularly difficult due to deeper growth concerns in Europe.

The euro briefly bought $1 in New York trade, but by early Asian trade it was under pressure at $0. 9958 – Just above Tuesday’s low of $0. 6192. The yen also gave back some overnight gains, hovering around 108. per dollar.

S&P Global (NYSE: SPGI) Composite PMI for August fell to – since May 2020 and was in contraction territory for the second month in a row, while new home sales hit a 6-1/2-year low.

Sterling found some support overnight after the UK Composite Purchasing Managers Index managed to stay in growth territory, although it didn’t really take away investors’ outlook for the UK or Europe.

Sterling is at $1 after hitting a 2-1/2 year low of $1. 9958 Tuesday.

“It’s really only a matter of time before the hard data reflects the reality of the brutal energy price hikes facing the UK, National Australia Bank (OTC: NABZY) Head of FX Strategy Ray Attrill said.

The Australian and New Zealand dollars rebounded overnight, but began to give back gains in Asian trade. The Australian dollar fell 0.2% to $0. 6912, while Kiwi fell 0.3% to $0. 6192 .

All eyes now turn to Jackson Hole, Wyoming, where the Fed holds its annual symposium Federal Reserve Chairman Jerome Powell will speak on Friday.

The U.S. dollar index , which measures the greenback against a basket of currencies, rose 0.1% to 108. Wednesday, and Two decade highs in July. beckoning.

“Jackson Hoo” The Seoul seminar didn’t really give us a reason to sell dollars in bulk,” said Chris Weston, head of research at Pepperstone in Melbourne.

“I think Powell might Will keep a low profile, which continues to make us want to buy dollars. Any sort of pullback in the dollar remains a buying opportunity.

Minneapolis Fed President Neil Kashkari reiterated in his speech on Tuesday the need for more aggressive rate hikes to control inflation.



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