After the important messages given by US Central Bank (Fed) Chairman Jerome Powell at the Jackson Hole meeting, the dollar index saw 109.5, the highest level since September 2002 with.
In global markets, a negative course is being followed after the “hawkish” messages given by central bank officials, especially US Central Bank (Fed) Governor Jerome Powell, at the Jackson Hole Economic Policy Symposium, while the intense data agenda to be announced in the new week is expected to guide pricing.
In a speech at the Jackson Hole Economic Policy Symposium on Friday last week, Powell renewed his commitment to fighting inflation, signaling that a return to loose monetary policy will not happen anytime soon.
Powell said that it would take a little time to re-establish price stability and said, “higher interest rates, slower growth and softer labour market conditions, inflation, households and businesses will give some pain.” These statements, on the other hand, brought hard sales to the markets.
After Powell’s statements, the probability of the bank’s 75 basis point rate hike in September in money market pricing increased to 75 percent, while the decision will depend on the sum of incoming data and the evolving outlook, the importance of the data to be announced this week also increased.
US DOLLAR AT A 20-YEAR HIGH
After the developments, there was a hard sell-off in the share markets with a reduced risk appetite globally, while the dollar index saw the highest level since September 2002 with 109.5. The US 10-year bond interest, which saw a bottom of 3.02 percent on Friday, exceeded 3.12 percent.
