US Dollar Slumps to 2024 Low
London: 21 August 2024 (TraderMade): The Greenback, often considered a safe-haven asset, experienced turbulence as the Euro flexed its muscles today. The US Dollar dropped to its lowest level in 2024, causing volatility across the Forex markets today.
The EURUSD pair soared about 0.4% to 1.11206 in a day.
Let’s take you through some significant factors causing this dramatic shift:
Rate Cut Speculations and Weaker Economic Data
The market participants anticipate the Fed’s rate cut in the near future. This speculation damages the Dollar’s appeal as the most sought-after currency. Similarly, the latest downbeat economic data from the US has shown signs of a slowdown.
Powell’s Speech at Jackson Hole Watched
The markets await the Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium. The policymakers’ stance on monetary policy will significantly impact the Forex markets. Market participants will try to analyze Powell’s speech to get clues on the Fed’s further actions.
The recent Euro rally indicates a shift in investor sentiment. The Euro regains some lost confidence amidst global economic uncertainties. It will be interesting to observe if the Dollar’s dip is a temporary blip or if the trend sustains in the long run.
