The US dollar remained stable against major currencies during trading on Monday, August 25, after a volatile week that saw strong pressure following comments by Federal Reserve Chairman Jerome Powell.
Market expectations have increased for a possible interest rate cut at the next September meeting, especially after Powell indicated in his speech at the Jackson Hole symposium that risks in the labor market are rising, prompting traders to price in an 84% probability of a quarter-point cut.
The euro edged down slightly to $1.1699, while the dollar rose against the Japanese yen to 147.26 yen, recovering some of last week's losses. The Australian dollar also climbed to a one-week high before settling near $0.6490.
Goldman Sachs analysts believe Powell's speech was in line with market expectations regarding the accommodative policy, noting that upcoming data, particularly inflation and job growth, will determine the pace of the Fed's decisions in the coming months.
Conversely, former US President Donald Trump’s statements against Powell and members of the Federal Reserve continue to put pressure on markets and raise investor concerns about the central bank’s independence.
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