Powell’s moderation depresses the dollar, Ida keeps oil on offer, cryptos consolidate

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This is what you need to know to trade today Monday, August 30:

The dollar remains on the defensive after the Fed Chairman refrained from signaling an imminent adjustment in his speech on Friday. Hurricane Ida struck Louisiana, affecting oil and gas production. Covid headlines and European inflation readings are expected. Cryptocurrencies and gold have stabilized.

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No rush to adjust the bond purchase program: Federal Reserve Chairman Jerome Powell said in July, he had thought it would be justified to cut the bank’s $ 120 billion a month bond purchase plan this year. However, since then, although employment has progressed, inflation is still seen as transitory and the Delta virus variant poses risks.

The markets saw it as a sign that the Fed is refraining from making a tapering announcement in September. Powell also stressed that the decision to increase interest rates is independent of tapering.

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Federal Reserve Chairman Powell: Make me a rate hawk, but not yet

The dollar fell across the board in response to Powell’s long-awaited Jackson Hole speech, which came after a long list of his colleagues had come out to support an imminent adjustment announcement. EUR / USD hit 1.18, GBP / USD rallied 1.3750, commodity currencies rebounded, and gold rose to $ 1.815.

Market mood remains lively on Monday and the focus now shifts to this week’s important employment report.

Powell Quick Takedown: Pigeon Beats Dollar, Without Strong NFP, Forget Tapering

Hurricane Ida It has made landfall in Louisiana, dropping nearly all crude oil and natural gas production. The storm’s winds are stronger than Hurricane Katrina in 2005, prompting President Joe Biden to declare a national emergency. WTI crude is trading around $ 68, at the upper end of the current range.

AfghanistanInvestors have brushed aside concerns related to the US evacuation plan from the war-torn country after temporarily falling in response to Thursday’s deadly terror attack. Several countries have already completed their missions before the August 31 deadline.

UK operators are enjoying a banking holiday, leading to tighter trade in the European session. Preliminary German and Spanish inflation readings for August are on the calendar.

Cases of COVID-19 they continue to rise in the United States, albeit at a slower rate, while in Europe they are stable and fall in South America. New Zealand and Australia have expanded their restrictions as cases continue to rise, while a study from Israel showed that booster shots help prevent hospitalizations.

Cryptocurrencies They have been going down, with Bitcoin hovering around $ 48,000, Ethereum around $ 3,150 and ADA around $ 2.80.

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