The U.S. Dollar Holds Steady After Powell’s Speech
The U.S. dollar remained stable on Friday following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole economic summit. Powell stated that the central bank may need to raise interest rates further to control inflation, but assured that any decisions would be made cautiously. The U.S. dollar index held steady at $104.06, marking its sixth consecutive week of gains.
Key Points:
- Powell emphasizes the need for careful consideration before tightening further
- The U.S. dollar index maintains its upward momentum, supported by a resilient U.S. economy
- Analysts believe Powell’s speech was less hawkish than anticipated, offering a more gradualist approach
- Interest rate futures suggest a high possibility of tightening at either the November or December policy meetings
- Euro and sterling weaken due to weak business activity data, raising concerns about growth prospects
The euro declined by 0.01% against the dollar, while the pound dropped to a 10-week low. In the cryptocurrency market, bitcoin fell by 0.49% to $26,039.
Hot Take:
Powell’s speech provided some reassurance to crypto readers, as it indicated a cautious approach to interest rate hikes. The stability of the U.S. dollar and the potential for tightening in the near future may impact the cryptocurrency market. It is important for crypto investors to closely monitor these developments.
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