Dollar sell-off continues ahead of Jackson Hole
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Daily Currency Update
The dollar sell-off has persisted over the past 24 hours, with EUR/USD nearing 1.11 overnight for the first time this year. Markets are anticipating that Fed Chairman Jay Powell will strongly signal a rate cut at the upcoming September 18th meeting during his speech at the Jackson Hole Economic Symposium on Friday. Confidence is also growing that Powell will downplay the weaker jobs data reported earlier this month as an anomaly, given the solid economic indicators seen in the U.S. since then. This shift in sentiment has led to continued selling of the dollar, while stock markets have recorded their longest streak of gains since November. Overnight, EUR/USD reached as high as 1.1088, and GBP/USD briefly traded above 1.30 before both pairs pulled back slightly. Currently, EUR/USD stands at 1.1075, GBP/USD at 1.2995, and GBP/EUR has edged down to 1.1730.Key Movers
It's another quiet day with no top-tier data releases expected from the UK, US, or Eurozone. The final reading of July's inflation from the Eurozone is due, with no change anticipated from the 2.9% year-on-year figure. This evening, a few Federal Open Market Committee members will be speaking, beginning with Atlanta Fed President Raphael Bostic, who will participate in a fireside chat at an event hosted by the bank. Later, Federal Reserve Governor Michael Barr will speak in Washington. As always, any hints regarding future monetary policy will be closely watched.Expected Ranges
- GBP/USD: 1.2940 - 1.3045 ▲
- GBP/EUR: 1.1670 - 1.1770 ▼
- GBP/AUD: 1.9275 - 1.9405 ▼
- EUR/USD: 1.1050 - 1.1140 ▲