The U.S. dollar saw gains after a critical manufacturing report in China signaled the world’s second-largest economy is slowing down. Today’s insight includes a bounce-back for oil prices, economic concerns Down Under, testimony from European Central Bank head Mario Draghi and the world’s reaction to China’s slowing economic growth.
The U.S. dollar approached two-week highs on Tuesday morning after Atlanta Federal Reserve Bank President Dennis Lockhart said he predicts the U.S. central bank will raise interest rates at the October or December FOMC meeting.
The U.S. dollar made gains this morning as markets anticipate that central banks around the world will ease monetary policy. The anticipation comes in the wake of the Federal Reserve’s decision last week to maintain its current rate level.
The euro and yen fell across the board on Tuesday as stronger-than-expected German data and rising European stock prices prompted investors to wind back some of the risk aversion that has recently dominated currency markets.
The comments by various Federal Reserve area officials at Jackson Hole Wyoming over the weekend left us more confused than before as both sides of the rate possibilities for September permeated the airwaves.