The US dollar index, which measures the performance of the US dollar against the other six currency baskets, was traded at 98.05 without moving away from the two-week high of 98.20 on Friday.
Declining yields reversed the 2-year / 10-year Treasury yield curve for the first time since 2007 last week. This event is generally regarded as a signal of recession that has turned its eyes to the Fed’s interest rate debate.
IG This week’s main event is the Jackson Hole symposium and the speech of Fed President (Jerome) Powell, Jun said Junichi Ishikawa, senior FX strategist at Tokyo IG Securities.
On Friday, Powell will address the annual central bankers meeting in Jackson Hole, Wyoming.
Erken While the contradiction between what Powell says about interest rates and what the market expects the Fed to do, it’s interesting to say, Is Ishikawa said.
After Fed cut interest rates in July, Powell said easing was not the beginning of the rebate series. However, markets expect the Fed to make another 25-point reduction in its policy meeting in September.
The euro remained calm at 1.1092, while the pound rose 0.15% to trade at 1.2166.
The dollar did not change much against the yen at 106.37.
US President Donald Trump experienced a slight decline in the yuan after he said he was not ready to make a deal with China.
Investors were also cautious before China’s announced new benchmark borrowing rate was announced on Tuesday.
On Saturday, the Bank of China announced interest rate reforms to help companies reduce borrowing costs and support slower growth due to the trade war with the United States.