Buckle Up: Dollar Braces for Powell’s Impact While Sterling Skyrockets on CPI Surge
Staff Editor The dollar has gained momentum against a basket of currencies ahead of the Federal Reserve Chairman, Jerome Powell’s, speech. Investors are eagerly waiting for any hints on the Fed’s stance on tapering its bond-buying program. The dollar index, which measures the greenback’s strength against six major currencies, edged up 0.07% to 92.61. Powell’s speech at the Jackson Hole Symposium is expected to provide insight into the central bank’s economic outlook and potential changes to its monetary policy.
On the other hand, the pound sterling has seen a rise after the release of the UK’s Consumer Price Index (CPI). The CPI rose by 2.0% in July, which was higher than the Bank of England’s target of 2.0%. The pound rose 0.19% against the dollar to $1.3779. A rise in the CPI can lead to an increase in interest rates, which can strengthen the currency. This news comes after the pound’s recent decline due to concerns over the Delta variant and Brexit tensions.
In conclusion, the dollar’s slight gain and the pound’s rise show the impact of economic data on currency movements. Investors are eagerly waiting for Powell’s speech to gain insight into the Fed’s potential policy changes. Meanwhile, the rise in the UK’s CPI has provided a boost to the pound sterling. As always, it’s important to keep an eye on economic data and speeches from central bank officials to stay informed on currency movements.
