Forex
Dollar Index Surges on Warsh's Hawkish Jackson Hole Remarks
The US Dollar Index (DXY) rose by 0.36% on Friday to around 99.50, following hawkish remarks from Federal Reserve Chair Kevin Warsh at Jackson Hole.
Warsh reiterated the Fed's 2% PCE inflation target and emphasized that officials must be confident underlying inflation is moving towards it, despite recent summer data showing improvements.
The CME FedWatch Tool showed a 56% probability of a September rate hike, up from roughly 36% before Warsh's speech. This shift in expectations was driven by the hawkish tone of the remarks.
US data were mixed, with the BLS preliminary Nonfarm Payrolls benchmark revision showing employment for the 12 months through March was cut by 79K, or 0.1%, after last year's 911K reduction.