Fed taper talk boosts the dollar, BOE “Super Thursday” in focus


Here is what you need to know on Thursday, August 5: 

The US dollar has received a boost from several Fed speakers, which have talked up tapering. US Nonfarm Payrolls hints have come out mixed. The focus is on the BOE, which is set to refrain from moving on “Super Thursday.” China’s regulatory efforts and covid headlines are eyed. Gold, oil and cryptos are down.

Taper talk: Federal Reserve Vice-Chair Richard Clarida said that he sees an announcement about tapering bond-buying coming this year and risks to his inflation outlook as being to the upside. He also said that persistent price rises of 3% YoY would be considered more than transitory and that a jobless rate of 3.8% would be low. 

Mary Daly of the San Francisco Fed, usually a dove, joined Clarida by saying that the bank could reduce its purchases as early as this year. The specter of fewer dollars printed boosted the dollar, sending EUR/USD from 1.19 to below 1.1850 and…

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