The Australian and New Zealand dollars each fell 0.6%, with the latter sinking to its lowest level in a year of $0.5815; however, this dip is not unexpected as these currencies are prone to global pendulum swings. Sterling, also subject to peaks and troughs, was down 0.2% at $1.2118, while the euro remained steady at $1.05374.
US economic activity also showed consistency since the beginning of September, with the loosening of the labour market helping prices to rise at a modest, more manageable pace. Experts from Barclays Bank noted the potential for another interest rate increase to close what has been a decidedly sharp year. Experts stated:
We continue to think, however, [that] there is a strong case for at least another rate hike, assuming that longer-term yields do not continue to rise sharply.
Powell is due to discuss the US’s economic outlook at the Economic Club of New York before the traditionally quiet period ahead of the rate-setting Federal Open Market Committee’s meeting on 1st November.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
During the July meeting, the Federal Reserve increased rates by 25 basis points to where they stand today; this was the eleventh hike in this cycle, after a brief pause in June, which intended to slow down the growing speed of inflation.
