Dollar Strengthens on US PMI Data; Hike Bets Rise to 70%
- Reports
- 3
- Developments
- 1
- Repetition
- 67%
New informationRepeats or wire copies
What happened
The US dollar gained strength against major currencies, including the euro, driven by upbeat S&P Global flash PMI data and hawkish remarks from Fed Governor Barr. Business activity in the world’s largest economy accelerated for the fourth consecutive month in September, reaching its fastest pace since July 2021. Due to price pressures intensifying, the probability of a back-to-back rate hike by the FED rose to 70% among market participants.
From actionforex.com
Why it matters
The strong economic data and Barr's warnings that risks to the 2% inflation goal have increased prompted market participants to factor in additional rate hikes. These expectations include 92 basis points of hikes by the end of 2027, excluding the recent 25 basis point increase.
From actionforex.com
Who's involved
- FEDThe central bank whose policy trajectory is being priced in by markets.
- BarrFED Governor whose comments influenced market expectations regarding policy recalibration.
- Donald TrumpPresident whose political and trade policies are monitored by the FED.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- FEDSpeculative
The FED could face pressure from market participants regarding its policy signals and the successful navigation of inflation targets.
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The entities involved
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Xi Jinping
General Secretary of the Chinese Communist Party since 2012 (born 1953)
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Donald Trump
American businessman and politician (born 1946), President of the United States (2017–2021; since 2025)
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FED
business
Related events
- Commentary and preparation for high-stakes summit talks between U.S. and Chinese leaders.
- Trump announced a meeting with Xi Jinping scheduled for September 24.
- High-level talks regarding trade, AI, and geopolitical issues are underway, with market analysts commenting on yuan strength and policy.
- High-level talks between Donald Trump and Xi Jinping are scheduled for September to discuss trade, technology, and security issues.
- Investors are awaiting insights and hints from the FED at the Jackson Hole symposium regarding interest rate cuts.