Dollar Rises as Investors Eye Global Political Talks and Fed Decisions
The dollar strengthened against the euro and sterling ahead of President Trump's meetings with Ukrainian and European leaders and the Federal Reserve's Jackson Hole symposium. Investors are closely watching clues on U.S. monetary policy, as the Fed is expected to cut rates amid mixed economic signals.
The dollar gained against both the euro and the British pound on Monday, setting the stage for a series of critical meetings involving U.S. President Donald Trump with Ukrainian and European leaders. Attention also turned to the Federal Reserve's upcoming symposium in Jackson Hole, which is expected to provide fresh insights into monetary policy.
Monday's foreign exchange market saw muted movements, with the dollar finding some support despite reduced expectations for a rate cut by the Federal Reserve next month. Money market data suggests an 85% likelihood of a rate cut in September following rising U.S. wholesale prices and solid retail sales figures for July.
Anticipation is mounting as Fed Chair Jerome Powell is scheduled to address the economic outlook and the central bank's policy framework at the Jackson Hole symposium. Meanwhile, Trump's meeting with Ukrainian President Volodymyr Zelenskiy and several European leaders focused on negotiating peace prospects in Eastern Europe.
(With inputs from agencies.)
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