Euro slides below 1.1600 as Warsh brings Fed rate hike back into play
EUR/USD falls sharply toward 1.1595 on Friday at the time of writing, losing 0.48% on the day, as the US Dollar (USD) rallies following Federal Reserve (Fed) Chair Kevin Warsh’s speech at the Jackson Hole Symposium.
On Friday, the Euro (EUR) experienced a sharp decline, sliding below 1.1600, as the US Dollar (USD) gained strength following Federal Reserve (Fed) Chair Kevin Warsh's speech at the Jackson Hole Symposium. Warsh emphasized that the central bank's primary focus should be on price stability, which prompted markets to increase expectations of a September interest-rate hike.
He stated that the Federal Reserve would need to be confident that underlying inflation is moving toward its target before considering further rate hikes. Warsh also noted that the Fed is not currently in a restrictive monetary policy stance, despite credit and loan markets showing few signs of restraint. The hawkish remarks from Warsh led to a reevaluation of Fed expectations, with the CME FedWatch Tool indicating a 57% chance of a September rate hike, up from around 36% prior to his speech.
This shift supports the US Dollar, which rose 0.44% to approximately 99.55 following Warsh's speech.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- British Pound tumbles as Warsh revives Fed hike bets fxstreet.com
