The U.S. dollar looks to stop the bleeding as the Bloomberg Dollar Spot Index is up for the first time in six days.
The greenback is marginally higher against its major peers after yesterday’s Fed minutes showed that the central bank remains on track to hike rate an additional two times this year. There were no considerable surprises in the minutes as Powell continued his slightly hawkish tone but pointed towards trade tensions as a major risk for the economy.
Fed watchers have shifted their attention to Jackson Hole, WY where a summit of central bankers is set to begin this evening. The program for the weekend event will be released at 8p.m. tonight but except full continental breakfasts and numerous speeches from central bank heads. Fed Chairman Jay Powell will speak tomorrow morning at 10 a.m. and is expected to discuss monetary policy and the economy as a whole.
Today’s economic docket includes weekly jobless claims which came in line with expectations. Later Market PMI for both services and manufacturing will cross the wire along with New Home Sales.
The Euro declined for the first time in a week against the U.S. dollar as the greenback staged a minor comeback across the board. PMI data showed that the Eurozone’s economy is growing and recovering from a dip during the first half of the year. The composite index of manufacturing and services increased to 54.4 in August from 54.3. A reading above 50 indicates expansion. French PMI was the All-star, solidly beating expectations.
The Australian dollar fell nearly a percent amidst increased political turmoil in the country. Three more cabinet members quit Prime Minister Malcom Turnbull’s government. Turnbull narrowly survived a leadership vote yesterday. Some expect the Prime minister to be ousted as soon as next week.