The dollar finally held steady against the euro on Friday after a brief bullish reaction to a speech by Federal Reserve Chairman Jerome Powell on monetary policy. At around 18:15 GMT, the dollar gained 0.05% to $1.0805 per euro and 0.08% against the pound at $1.2592 per pound.
Acceleration and then return to the level before the speech.
The head of the Federal Reserve reiterated that inflation was “too high.” “We are ready to raise interest rates further if necessary and intend to maintain tight monetary policy until we are sure that inflation is moving sustainably towards our target,” he added. The dollar first accelerated its rise in reaction to these remarks before returning to its pre-speech level.
Ten-year bond yields held steady at 4.22%. Joe Manimbo saw “a return in risk appetite that limited the dollar’s rise.”
On the New York Stock Exchange, stocks, which had initially reacted in the red to the firmness of Jerome Powell’s remarks suggesting once again that another rate hike is not out of the question, fell, then rose.
uncertain trajectory
On behalf of the European Central Bank (ECB), President Christine Lagarde will also speak in Jackson Hole on Friday. Elsewhere in the currency market, the Turkish lira fell 2.71% to £26.549 per dollar, suffering from the uncertain path of the country’s central bank’s monetary policy.
The day before, the currency had indeed jumped against the dollar, rising almost 7% after a colossal and unexpected increase in the official rate of the Turkish central bank, from 17.5% to 25%. This tightening “far exceeded the most optimistic expectations of the market,” said Tatha Ghose of Commerzbank.
Source: BFM TV
