The US Dollar Continues to Strengthen Its Position, Here's What Happened in the Market!

<p>&nbsp;The US Dollar strengthened on Thursday, supported by strong US labor market data and investors looking ahead to Fed Chairman Jerome Powell's speech on Friday at the Jackson Hole Economic Policy Symposium.</p><p><br /></p><p>Investors are looking forward to Chairman Powell's speech on monetary policy on Friday for clues on the Fed's further actions, whether it is nearly done raising interest rates and how long it plans to keep rates high.</p><p><br /></p><p>The dollar was also helped by data showing the number of Americans filing new jobless claims fell last week, although labor market conditions remained tight despite aggressive interest rate hikes by the Fed.</p><p><br /></p><p>Waima so the response to them was somewhat muted overall, indicating that the Jackson Hole Symposium was the main thing in the attention of market players.</p><p><br /></p><p>The US dollar index that measures the currency against six major partners strengthened 0.52% to 103.88, just below the more than 2-month high of 103.98 touched in the previous session.</p><p><br /></p><p><br /></p><p>Slower-than-expected data this week in Europe and the United States has dampened investor interest in riskier currencies and supported the US dollar as a safe haven.</p><p><br /></p><p>Elsewhere, the Turkish lira hit a 2-month high against the US dollar, up about 5% to 25.6805 against the US dollar after Turkey's central bank raised its 1-week repo rate from 17.5% to a much higher than expected 25%. According to the average estimate in a survey by Reuters, economists expect the policy rate to rise to 20%.</p><p><br /></p><p>Turkey's central bank began a tightening cycle in June after President Tayyip Erdogan appointed former Wall Street banker Hafize Gaye Erkan as governor. The central bank on Thursday reiterated a pledge to tighten policy further as needed gradually, even as it raised the one-week repo rate by an aggressive 750 basis points.</p><p><br /></p><p>On the other hand, the Pound fell against the US dollar and the euro on Thursday, a day after data showed a reduction in manufacturing activity in August, forcing the market to reduce expectations for further policy rate hikes from the Bank of England. The British currency fell 0.87% to $1.2629, close to a nearly 2-month low hit on Wednesday.</p><p><br /></p><p>British factory output slumped, putting the economy at risk of recession and forcing markets to reduce expectations for further policy rate hikes from the Bank of England.</p>