There was a flurry of data yesterday, as US policymakers headed (virtually) to Jackson Hole in Wyoming for the annual symposium.
They will have been buoyed by news that the US labour market is holding steady against high Covid cases and that the economy grew faster than expected in Q2, with GDP estimates revised upwards to 6.6%.
The dollar approaches the end of August having gained on all major currencies during August, including by over 1.5% against GBP, SEK and CAD and nearly 1% against the euro.
Even so, this week showed a marked downturn for USD against commodity-backed currencies, with losses in excess of 1% against the Norwegian krone and New Zealand, Canadian and Australian dollars.
The big event of the day will be US Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole at 3pm UK time where he is likely to express a view on tapering asset purchases in support for the US economy.
There is no public holiday in the US on Monday (Labor Day is the following Monday), so data of interest next week will include pending home sales and the Dallas Fed Manufacturing Index.
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