The US dollar recorded declines in the opening session of the week yesterday, Monday, the 23rd of August (August), by more than 0.50% when the index that measures the performance of the dollar against a basket of currencies (Dollar Index) closed at levels of 92.95, while the markets witnessed gains for the other major currencies and gold, benefiting from this decline .
And the markets began to divide about their expectations for the US Federal Reserve to reduce its purchases of bonds amounting to 120 billion dollars per month after the strong rise in the recent period in the number of people infected with the Corona virus with its new strain, Delta in the United States of America, which will affect economic growth and thus raise fears that it will cast a shadow on Fed decisions in setting a date to reduce purchases at the Jackson Hole conference this week.
The Jackson Hole Conference, which will be held from Thursday, August 26 to Saturday, August 28, entitled (Macroeconomic Policy in an Unequal Economy) is one of the most important and oldest central banking conferences in the world.
The symposium attracts more than 140 central bankers and Nobel Prize winners from more than From 40 countries, it will be held online this year due to Corona’s concerns. The importance of the conference is that it has long been used by central bank heads around the world to announce strong shifts in monetary policy.
The speech of Federal Reserve Chairman Jerome Powell will be on Friday, August 27 at 10 am EST, and the markets will be waiting for any hints regarding the schedule of the US Federal Reserve to start reducing its purchases of assets, and therefore it will be the main driver of the markets in the coming period.
During the opening session of the markets yesterday, Monday, negative data from the US economy issued by the US Bureau of Economic Analysis also helped in the US dollar’s declines, as the manufacturing PMI recorded a decline to 61.2 in August, compared to 63.4 in July, below expectations that indicated a decline to 62.4, in On the other hand, the services index recorded a decline to 55.2, the lowest level in eight months, compared to 59.9 in the July reading (expectations at 59.1).
The Canadian dollar was one of the main beneficiaries of the declines of the US dollar, as it recorded increases of more than 170 points against the US dollar at the close at 1.2644 levels, and also benefited from the crude increases by more than 5%, and it is trading this morning Tuesday at 1.2623 levels.
The British pound rose by about 100 pips against the US dollar at the close at 1.3717 levels, and is now trading at 1.3740 levels.
27/12/2024
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