USD rebounds after Powell speech
Friday 26 August, 2022
Daily Currency UpdateThe Canadian dollar edged up against the US dollar immediately following a highly-anticipated speech from US Federal Chair Jerome Powell at the annual Jackson Hole Economic Symposium. But USD rebounded in the mid-morning trading session, pushing up USDCAD again.
Powell reiterated the central bank’s commitment to bringing down inflation to its 2% goal, which signals that they will continue to hike interest rates at an aggressive pace. But the Fed Chair didn’t confirm the size of the upcoming rate increase in September, only saying that the Fed will watch the economic data before the decision.
Before the speech, data showed that there were signs of easing US inflation in July. The core Personal Consumption Expenditures (PCE) price index decreased by 0.1%.
USDCAD was trading at 1.29952 at the time of writing.
Key MoversEURUSD pushed up this morning immediately following Powell’s speech but erased some of its gains when USD recovered in mid-morning trading. The European Central Bank (ECB) minutes released on Thursday did not give markets any more information. However, concerns around a weak euro has become a key theme. Market participants will be closely paying attention to a number of ECB speakers in the calendar next week. EURUSD was trading at 0.99864 at the time of writing.
- EUR/CAD: 1.289 - 1.3025 ▲
- GBP/CAD: 1.526 - 1.5364 ▼
- AUD/CAD: 0.8996 - 0.9047 ▼
- USD/CAD: 1.2905 - 1.3009 ▲