August 23, 2021

Investor Doubts On Fed Stop USD Rise

 Heading into the European session, greenback dollar trading is still showing a decline following market doubts that the Federal Reserve (Fed) will delay reducing its asset purchases this year.

Last week, Dallas Federal Reserve (Fed) President Robert Kaplan said he would consider delaying the move in response to the effects of the growing delta variance.

Earlier, Kaplan was one of the Fed’s strongest policymakers supporting a proposal to withdraw stimulus measures more quickly.

Market focus is now focused on the annual event of the Jackson Hole symposium in Wyoming on Friday that will see Fed Chairman Jerome Powell speak about the U.S. economy.

Right now, there are rumors blowing fast that Powell will use a speech at Jackson Hole to delay plans to implement a reduction in bond purchases.

This caused the king of the US dollar to stop from gaining gains, trading around 93.24 after falling 0.2% against its main competitor.

The release of US manufacturing and services PMI data will be the next market focus tonight which is expected to continue to show strong growth despite a slight decline from the previous reading.

On the other hand, the Aussie and New Zealand dollars are trying to bounce back from 9 -and -a -half -month lows by taking advantage of the US dollar’s ​​decline. However, the increase recorded was relatively limited due to the situation of Covid-19 in Australia and New Zealand still showing improvement.