On August 24, 2024, the U.S. dollar faced a sharp decline following a significant announcement by Federal Reserve Chair Jerome Powell, who signaled that the long-awaited interest rate cut might be implemented in September.
This news reverberated through currency markets, driving sterling to its highest level in over two years and pushing the euro to a 13-month high. Meanwhile, the dollar hit a 17-day low against the yen.
Speaking at the Kansas City Fed's annual economic symposium in Jackson Hole, Powell stressed the necessity of adjusting monetary policy due to diminished inflation risks and mounting challenges in the labor market. His remarks intensified market speculation, with traders now estimating a 65% chance of a quarter-point rate cut at the upcoming Federal Reserve meeting. The odds of a more substantial 50-basis-point reduction also rose. The dollar's weakness was apparent, with the dollar index dropping 0.81%, highlighting the broader effects of Powell's comments on global currencies.
Sterling surged to $1.32295, its highest point since March 2022, buoyed by favorable economic data from the UK. The euro also strengthened, reaching $1.1195, while the yen appreciated to 144.27 per dollar. Other currencies, such as the Swiss franc and Canadian dollar, also posted gains against the dollar, as market participants absorbed the potential implications of a shift in U.S. monetary policy.
#BNBChainMemecoins #SahmRule #LowestCPI2021 #BinanceBlockchainWeek #CryptoMarketMoves