The dollar is looking strong against the pound and the euro this morning, as markets await Jerome Powell’s speech at Jackson Hole later. He is expected to provide some forward guidance on US interest rate policy. So far, rhetoric has been very mixed amongst other Fed speakers.
A series of poor US economic data was released yesterday, which could have some bearing on Powell’s speech this afternoon. Manufacturing PMI dropped into contraction territory, falling to 49.9 in August from 50.4 in the previous month. Services PMI and Composite PMI also fell in August, both missing expectations.
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