The dollar is struggling to get up after Powell’s Dovish shock

The US dollar attempted Monday to go up the slope after falling to a four -week low against the Euro. Similarly, a direct consequence of the accommodating turn made by the president of the Federal Reserve, Jerome Powell, who plunged the currency by more than 1 %.

The greenback won 0.2 % to reach 1.1699 dollars per euro at the start of the Asian day, but remained close to the hollow of Friday at 1.174225, an unrivaled level since July 28.

Faced with the Sterling book, he appreciated 0.1 % to 1.3502 dollars, after a fall of 0.8 % during the previous session. Furthermore, It also resumed 0.4 % to 147.46 yen, recovering part of the 1 % drop recorded on Friday.

The Australian motto, sensitive to risk, briefly jumped on Monday at a one -week summit to 0.6523 dollars before falling dollar struggling get up after slightly to 0.6484. Furthermore, During the previous session, it had climbed 1.1 %.

In a long -awaited speech during the annual Jackson Hole of the FED symposium on Friday. Moreover, Jerome Powell opened the door to a drop in guiding rates at the September bank meeting.

“The risk of employment is increasing,” he said before an audience of international economists and decision-makers. Therefore, “And if these risks materialize, they can do it quickly. »»

From now on. the markets integrate 80 % the probability of a drop in rate of a quarter of a point during the monetary policy meeting on September 17, as well as a cumulative reduction of 48 base points by the end of the year, according to LSEG data.

Investors had strengthened their bets over a drop in September from the start of the month after the publication. of a lower employment than expected employment. But dollar struggling get up after prices inflation in production greater than expectations as well as good indicators of business activity had led to. a downward revision of these anticipations before Jackson Hole.

“Jerome Powell’s message to Jackson Hole was enough to meet the expectations of an accommodating tone. while the probability of dropping rates by the Fed had gradually eroded,” said Goldman Sachs analysts in a note to their customers.

“It will be the data that will determine the pace and the magnitude of the drops. »»

Among the upcoming key indicators are the PCE index. the Fed’s favorite inflation measure, published on Wednesday, and monthly employment figures for August, expected next Friday.

The dollar has also undergone additional pressures in recent weeks. while the attacks by US President Donald Trump against Jerome Powell and other Fed officials are raising concerns about the Central Bank independence.

Governor Lisa Cook became the last target of Donald dollar struggling get up after Trump last week. and on Friday, he said that he would dismiss her if she did not resign after allegations concerning mortgages she would hold in Michigan and Georgia.

Donald Trump repeatedly criticized Jerome Powell. first for not lowering the rates this year, then more recently due to cost exceeding when renovating the headquarters of the Federal Reserve.