Key Facts
• August 21: Dollar rose against major currencies in the New York forex market.
• August 22: Fed Chair Powell’s speech at the Jackson Hole Symposium is highly anticipated.
• September meeting: Powell unlikely to clearly signal a rate cut due to pending data.
• August 16: Weekly jobless claims rose by 11,000 to 235,000, a three-month high.
• August PMI: U.S. composite PMI hit 55.4, the highest since December 2022.
• Fed officials’ views: Mixed opinions on the necessity and timing of a rate cut.
• DOJ investigation: Fed Governor Cook faces scrutiny over alleged mortgage fraud.
• Closing rates: Dollar Index +0.38% (98.60), EUR/USD -0.34% (1.1611), USD/JPY -0.65% (148.29).
• Bitcoin: Dropped 1.77% to $112,466.
Summary
The U.S. dollar strengthened against major currencies on August 21, as markets focused on Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium. While Powell is unlikely to explicitly signal a rate cut at the September meeting, his remarks may hint at his support for such a move. Economic data showed a rise in weekly jobless claims and a strong PMI reading, reflecting mixed signals about the U.S. economy. Fed officials expressed differing views on rate cuts, with some emphasizing inflation risks and others highlighting labor market concerns. Meanwhile, the Department of Justice launched an investigation into Fed Governor Cook over alleged mortgage fraud. The dollar index rose 0.38%, while Bitcoin fell 1.77%.
