The Currency analytics
By Evie Vavasseur
Dollar strength accelerates fast. The Federal Reserve kept interest rates unchanged on January 27, sending the greenback climbing against major currencies as traders bet on…
Fed Chair Jerome Powell didn't mince words during his press conference following the rate decision.
The dollar index jumped 0.5% right after the announcement, catching some currency traders off guard who'd positioned for a more dovish tone.
Analysts see the Fed's caution as pretty much inevitable given current conditions. Inflation pressures have cooled from their peaks, but nobody's calling victory yet.
Labor market data played a big role in the Fed's thinking. Unemployment sits at 3.8%, which is still historically low territory.
Emerging markets face real problems now.
Dollar strength puts serious pressure on countries carrying heavy dollar-denominated debt loads.
Wall Street's reaction was mixed but not panicked. The Dow Jones Industrial Average crept up 0.3% to close at 34,500, while the S&P 500 basically went nowhere.
Currency strategists at JPMorgan Chase are watching upcoming economic data closely. "The next few weeks will be critical," said strategist Daniel Silver, pointing to January's…
Asian markets felt the dollar's rise immediately. The Japanese yen weakened to 115.30 per dollar, hitting a three-week low as the Bank of Japan maintains its ultra-loose policy…
Commodities got whipsawed by currency moves. Gold prices dropped 1% to $1,825 per ounce as the stronger dollar made the metal more expensive for international buyers.
Bank of England Governor Andrew Bailey is watching dollar moves carefully as the pound's recent weakness could complicate the UK's inflation fight.
European Central Bank President Christine Lagarde faces similar challenges with the euro under pressure.
Agricultural markets are feeling currency effects too. Corn futures on the Chicago Board of Trade hit $6.
Brazil's central bank didn't waste time responding to real weakness. Banco Central do Brasil said January 28 it's ready to intervene if needed to stabilize currency markets,…