TechFlow, Aug. 22 — According to Jinshi Data, Commonwealth Bank of Australia economist Kapso said that the speech by Federal Reserve Chair Powell at the Jackson Hole annual symposium will be the next catalyst for the dollar's movement. However, don't expect Powell to send a clear signal in either direction.
Kapso said Powell may keep his options open and wait for more data. But if Powell indicates willingness to cut rates, markets are expected to more fully price in a September rate cut, leading to a modest decline in the dollar. He noted that the current probability of a September rate cut is around 70%, setting a high bar for Powell to deviate from market expectations.
Add to Favorites
Share to Social Media
