The dollar strengthened Monday as global attention turned to Washington, where U.S. President Donald Trump hosted Ukrainian President Volodymyr Zelenskiy and prepared for wider talks with European leaders on a potential peace settlement.The high-level gathering comes as investors weigh the likelihood of Federal Reserve policy shifts ahead of Chair Jerome Powell’s speech at Jackson Hole on Friday.
The market reduced its expectations for a September rate cut after U.S. producer prices exceeded forecasts in July which reduced the earlier expectations based on low consumer inflation data. Fed fund futures now assign an 85% chance of a quarter-point cut, down from nearly full pricing last week.The analysts believe that Powell will not pre-commit before August’s jobs and inflation readings, though softer labor market data could give him room to act.
