US Dollar Surges on Hawkish Comments and Strong Economic Data

Last week's data releases had a significant impact on currency markets. The US Core PCE Price Index rose to an annualized rate of 3.7%, giving the US Dollar a boost. The Australian CPI, meanwhile, fell from 3.8% to 3.5%, putting pressure on the RBA and boosting the Aussie.

The Canadian GDP came in higher than expected, but the currencies most affected by these data releases were the US Dollar, the Australian Dollar, and to a lesser extent, the Canadian Dollar.

Market sentiment was also influenced by the Jackson Hole Symposium of central bankers. Fed Chair Kevin Warsh's speech was seen as hawkish, with him stating that inflation remains above the 2% target and that the economy is resilient enough for broad financial conditions not to be restrictive. This led to a 57% chance of a September rate hike.

Additionally, there were bullish breakouts in agricultural commodities last week, particularly wheat and soybeans.