The following 5 days could be pivotal for the US dollar. Not only will we get further detail on the Fed’s first interest rate cut in over a decade but we’ll also have commentary on the future path of US interest rates, as well as many other regions too.
Wednesday will see the latest meeting minutes from the Fed’s most recent gathering at the end of July. The central bank lowered interest rates for the first time in over 10-years and highlighted that much of the reasoning was down to factors outside of the US economy. These would include a Eurozone and China economic slowdown as well as Brexit in the UK. The meeting minutes will provide further detail on the nature of the rate cut and will also provide insight into the central bank’s thinking for the remainder of 2019.
At the back-end of the week the Jackson Hole Symposium will take place. This is an annual event where many central bankers, from across the globe, get together and discuss monetary policy. It’s become an important event in recent times as many central bankers have taken the bold move of announcing fresh policy moves. Much attention will be paid to both the Federal Reserve and the European Central Bank speakers as we could well see new developments emerge at this year’s event.
Written by Viv Savani. 8:48am, August 19th 2019
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.