The dollar strengthened on Monday (August 18th) ahead of a meeting between US President Donald Trump and his counterparts from Ukraine and Europe, while attention was also focused on the Federal Reserve's Jackson Hole Symposium for policy guidance.
The euro weakened 0.2% against the dollar to $1.1680, the yen weakened by the same amount to 147.445, while the British pound weakened about 0.1% to $1.3544.
Reduced bets on a Fed rate cut next month helped the dollar find support amid previously stagnant foreign exchange market movements on Monday.
Money markets now price in an 83% chance that the Fed will cut rates by a quarter point next month, as traders reduced bets on a rate cut after a series of data including a surge in US wholesale prices last month and a solid increase in July retail sales figures.
Fed Chairman Jerome Powell is scheduled to speak about the economic outlook and the central bank's policy framework at the Jackson Hole symposium between August 21 and 23. MUFG expects the US central bank to also cut interest rates in September, but it is unlikely the Fed Chairman will give a clear signal on that this weekend, said Lee Hardman, senior currency analyst at MUFG Bank.
Powell's final speech at the conference before his term ends in May comes as he seeks to balance the Fed's two goals: stable prices and low unemployment. Inflation in the US is above the central bank's target, while recent data also points to a slowing labor market.
"The majority of investors expect further dollar weakness, but a minority, who prefer to buy at current levels and see no convincing evidence of weak US growth, also has a sizable following," said Kit Juckes, chief FX strategist at Societe Generale, in a note on Monday, citing client interactions.
The dollar strengthened 0.1% against a basket of major currencies on Monday, but has weakened more than 9.5% so far through 2025. The main event for investors on Monday will be the White House meeting between Trump and Volodymyr Zelenskiy, which will be attended by several European leaders, as Washington urges Ukraine to quickly accept a peace deal to end Europe's deadliest war in 80 years.
Trump met with his Russian counterpart, Vladimir Putin, on Friday and agreed that a peace deal should be pursued without a ceasefire. "Financial markets continue to trade as if there is a path to peace-which remains undefined," said an ING analyst note. "With risk assets bid up and energy prices on offer, we expect the dollar to remain under some pressure as dollar-based investors continue to invest," the note said.
Trump called on Ukraine to abandon hopes of regaining annexed Crimea or joining NATO, as he prepared to host Zelenskiy and European leaders in Washington to urge Kyiv to accept a peace deal with Russia. In other currencies, the Swiss franc was little changed at 0.80965, while the Australian dollar rose 0.1% to $0.6515 and the New Zealand dollar rose 0.2% to $0.5941. (alg)
Source: Reuters
The dollar steadied on Monday ahead of a key meeting between U.S. President Donald Trump and his Ukrainian counterpart Volodymyr Zelenskiy, while investors also looked ahead to the Federal Reserve's J...
The dollar index hovered around 97.8 on Monday as investors awaited a pivotal meeting in Washington between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy, while also looking ah...
The dollar slipped on Friday as a data-heavy week wound down, keeping the case for a September Federal Reserve interest rate cut intact, while traders awaited talks in Alaska between U.S. President Do...
The U.S. dollar slipped on Friday as investors remained cautious about the rate outlook ahead of import price data, after recent figures suggested inflation could accelerate in the coming months. The...
The U.S. dollar rose slightly against other major currencies on Thursday, but stayed close to multi-week lows as bets that the Federal Reserve will resume cutting interest rates next month ticked high...
Oil prices remained stable as market participants await the outcome of the Trump-Zelenskyy meeting, which could determine the direction of the Russia-Ukraine conflict. If a peace agreement is reached, a potential increase in supply could further...
Gold prices fell slightly to $3,334 per ounce on Monday (August 18th), nearing a two-week low, as prospects for easing geopolitical tensions diminished the precious metal's appeal as a safe-haven asset. The meeting between US President Donald...
US stocks traded with little movement on Monday as the market awaited new catalysts this week and incoming clues regarding the Federal Reserve's monetary policy outlook. The S&P 500, Nasdaq 100, and Dow Jones were all relatively flat and...
United States (US) President Donald Trump and Russian President Vladimir Putin concluded an initial face-to-face meeting in Alaska late Friday, with...
US stocks closed mixed on Friday as investors digested economic data, corporate news, and geopolitical developments. The S&P 500 slipped 0.3%...
The Trump administration has expanded its 50% tariffs on steel and aluminum imports to cover hundreds of additional products. In a Federal Register...
Asia-Pacific markets traded mixed Monday , after the U.S.-Russia summit concluded without a ceasefire.
Japan's Nikkei 225 benchmark rose 0.62%,...