US Dollar (USD) Climbs on Hawkish Powell Comments
Despite an uncertain start to the session, the US Dollar (USD) eventually leapt higher on Friday following hawkish comments from Federal Reserve Chair Jerome Powell.
At his highly anticipated Jackson Hole speech, the Fed chief indicated that more interest rate hikes may be on the way as inflation remains ‘too high’.
Looking ahead, the latest JOLTs job opening figures might impact USD. If there are any signs that the US labour market remains hot, the ‘Greenback’ could climb.
Pound (GBP) Regains Ground amid Dip-Buying
The Pound (GBP) ticked higher on Friday, recouping some of its losses following a bruising week.
The upside seemed to come as investors bought the dip, with Sterling having entered oversold conditions.
UK economic data is in short supply this week, which may leave the Pound to trade listlessly. GBP investors will likely be keeping an eye on domestic headlines.
Euro (EUR) Recovers following German Data Miss
The Euro (EUR) initially stumbled at the end of last week after Germany’s latest business climate indicator printed below forecasts to show a significant decline in business morale.
However, EUR managed to recoup losses against some of its riskier peers as the market mood soured through the latter part of the session.
This morning, new data showed that German consumer confidence dropped to a four-month low heading into September. As a result, the single currency is off to a difficult start.
Canadian Dollar (CAD) Softens despite Rising Oil
The Canadian Dollar (CAD) weakened at the end of last week, as a slight uptick in oil prices failed to lift the commodity-linked ‘Loonie’.
Turning to today’s session, Canadian economic data is thin on the ground. As a result, the crude-linked ‘Loonie’ could be driven by oil price dynamics.
Australian Dollar (AUD) Firms as Market Mood Improves
The risk-sensitive Australian Dollar (AUD) strengthened during last night’s session as an upbeat market mood boosted the ‘Aussie’.
New Zealand Dollar (NZD) Buoyed by Risk-On Sentiment
Likewise, the New Zealand Dollar (NZD) rallied as risk appetite improved.