This week has been an eventful week for the US Dollar, with a number of factors ultimately combining, resulting in a sell off of the Dollar, weakening its value.
Whilst tensions between North Korea and the US seemed to cool, at least for now, Donald Trump found himself in the spotlight following controversial comments following the Charlottesville violence.
The President Trump’s comments haven’t been well received and have caused the CEO’s of Campbells Soup and 3M to resign from the White House manufacturing council. These were just two of the seven leaders to step down following the comments. With Inge Thulin, the chief executive at 3M releasing the following statement on Twitter:
— 3M (@3M) August 16, 2017
This has caused Trump to disband two business councils and has made the Dollar vulnerable as a result. I personally believe, that the politics will remain a key driver for the Dollar moving into next week.
Will the Jackson Hole Symposium give further insight into the FED’s monetary policy?
The recent softening in inflation in the US has caused the Federal Reserve to tread carefully when it comes to whether or not to raise US interest rates.
This week’s FOMC minutes caused a sharp sell off in the Dollar due to the FOMC being divided on whether labour data currently supports a rate hike. A widespread range of topics are to be covered at the Jackson Hole Symposiumin Florida, however I wouldn’t expect to see too much further insight into future monetary Policy. Both Janet Yellen and Mario Draghi are expected to give a talk, so I would expect some market volatility whilst they deliver their opinions on the current economic outlook.
