Emerging Markets Assets in Tight Range As Investor Focus Turns to Jackson Hole
“I do not expect a shock from Jackson Hole, rather a cautious Powell who will indicate that rate cuts are coming’.
Photographer: Michael Nagle/BloombergEmerging-market currencies fell for a sixth consecutive day on Thursday, as strong US manufacturing data combined with fresh hawkish comments from the Federal Reserve to weigh on the outlook for US interest rate cuts.
A gauge of developing-world currencies fell to the lowest levels since early August, after the Federal Reserve Bank of Cleveland President Beth Hammack said she wouldn’t support lowering interest rates if the decision was tomorrow. The index had already taken a hit from the S&P Global flash August factory purchasing managers index, which rose to the highest since May 2022, reinforcing the case for the Fed to stay put.