Federal Reserve unlikely to pivot more dovish, USD seen supported

Comments from analysts at Commerzbank referring to the recent ructions in markets:

• Federal Reserve is unlikely to endorse expectations that it could cut interest rates more aggressively than previously anticipated at the upcoming Jackson Hole symposium
• this could boost the US dollar
• Commerzbank says watch U.S. inflation data next week, August 14; if its are higher than expected or markets suffer another massive panic attack, Fed officials will likely try to exude calm at the August 22-24 symposium
• the Fed will then wait for the next jobs report due in September, “This would mean that the current rate cut expectations may have to be corrected and the dollar could gain a little more.”

This article was written by Eamonn Sheridan at www.forexlive.com.