The dollar gained fresh strength against sterling last week following Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday.
Powell has committed the Fed to controlling inflation despite the likelihood of “some pain” to the US economy. That is likely to cause some pain elsewhere too, and the first casualty was sterling. This morning, however, a little of that shine has come off USD/GBP and it is currently around 0.5% below yesterday’s high water mark.
Against the euro, the greenback is currently a little lower than this time last week.
The big data release today will be JOLTS Job Openings for July, expected to dip below last month’s 10.7million, as the pain that Powell spoke of starts to bite. The week will end with Non Farm Payrolls.
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