Forex
Dollar Soars to Near Two-Week High on Hawkish Fed Speech
The US dollar rose to a near two-week high after Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole conference was perceived as hawkish.
Warsh said underlying inflation trends in the U.S. had not 'meaningfully improved' and reasserted that the central bank's focus should be on delivering price stability.
This sparked increased expectations of a rate hike in September, with odds now standing at more than 57% according to the CME FedWatch tool, up from about 35% the previous day.