The US dollar performed well yesterday, regaining an impressive amount of ground against both the euro and pound. Just when many believed the greenback had entered a turning point, with the Fed pivoting on the policy last week, it has a very strong day of gains. This is a testament to how volatile markets are at present. Even whilst in a period defined by quiet trading conditions, we see 2 days on the trot of almost 1% moves in either direction.
Today’s economic calendar sees global services PMIs reflecting July activity. The focus will also be on Fed speakers across the remainder of the week as some have seen it fit to reign in comments from chairman Powell last week which offered the impression the Fed may be less aggressive on rates from this point onwards. Regardless of any events on the calendar, we can all expect more volatility as the monetary path back to normality continues.
Written by Viv Savani. 7:06am, August 3rd 2022
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