Free Trial
ASIA

Coming up in the Asia-Pac session on Monday:

MNI

Coming up in the Asia-Pac session on Monday:

USDCAD TECHS

Consolidation Mode But Remains Bearish

AUDUSD TECHS

Fails To Hold Onto Thursday’s High

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
DOLLAR

Goldman Sachs note that "Fed Chair Powell announced the results of the central bank's long-running framework review at this year's Jackson Hole research conference. The FOMC revised its official statement on policy goals, saying it will now aim to achieve an average inflation rate of 2%, partly by aiming above 2% following periods when inflation has fallen short of that goal. Inflation in the Fed's preferred measure has averaged only 1.5% over the last decade, and high unemployment should keep price pressures relatively low over the near-term. Therefore, unless the economy rebounds much more rapidly than expected, the new policy framework effectively commits the Fed to a very long period of near-zero policy rates, negative real interest rates, and a large balance sheet. This should reinforce ongoing depreciation in the US Dollar. Over the short-term Dollar trends will likely be driven by covid developments in the US and continental Europe, polling related to the US election (with a tighter race likely supporting the Dollar on the margin), and fund flows, which have increasingly favored non-US assets."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Sign up now for free access to this content.

Please enter your details below and select your areas of interest.