Finance News

Story: Dollar Surges Near One-Week High as PCE Data Fuels Fed Rate Concerns

By Sakamoto Nashi

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PCE Data Keeps Rate Hike Bets Warm. It's worth being clear about what the PCE data actually did to market sentiment.

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Euro and Yen Take the Hit. The euro is weak. Not collapsing, but clearly on the back foot against the dollar as the…

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Commodity Markets Feel the Squeeze. Commodities are getting hit too. When the dollar appreciates, goods priced in dollars — oil,…

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The dollar isn't letting go. U.S. currency markets are holding close to one-week highs, and the fuel behind the move is pretty much what everyone expected — stubbornly hot…

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The latest Personal Consumption Expenditures figures came in and didn't offer much comfort to anyone hoping inflation was cooling off.

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It's worth being clear about what the PCE data actually did to market sentiment. Before the release, there was some hope — maybe inflation had softened enough to give the Fed…

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Market participants are now closely watching every Fed communication for clues. Any hint that policymakers are softening could shift things quickly.

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U.S. Treasury yields moved higher alongside the dollar. Bond markets reacted to the heightened inflation expectations by pushing yields up, and that move gave the dollar…

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The euro is weak. Not collapsing, but clearly on the back foot against the dollar as the divergence in monetary policy expectations grows.

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Emerging market currencies are getting squeezed. A stronger dollar is basically a tax on emerging economies that borrow in U.S.

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Related: Crypto Traders Brace for Fed Chair Warsh’s Key Jackson Hole Inflation Speech

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Some central banks outside the U.S. may have to reconsider their own policy paths. A persistently strong dollar complicates things for countries that were hoping to ease, or at…

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Commodities are getting hit too. When the dollar appreciates, goods priced in dollars — oil, metals, agricultural products — become more expensive for buyers using other…

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The volatility in forex markets right now is pretty elevated. Traders aren't making big directional bets with a lot of conviction — they're staying cautious, keeping positions…

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The interplay between inflation data and currency moves is especially sharp right now. The dollar is functioning almost like a live poll on what the market thinks the Fed will do.

The Currency Analytics

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