The dollar gains before Key Powell in Jackson Hole on Friday

Written by Karen Britiel

New York (Reuters) -The dollar, which took place on Thursday, will be evaluated by a speech expected by the Federal Reserve Chairman Jerome Powell on Friday for any new evidence about whether the US Central Bank is likely to reduce interest rates next month.

Merchants have risen to a reduction in the Federal Reserve meeting from September 16 to 17, after an unexpectedly weak job report in July. However, the risk of high inflation as President Donald Trump’s administration enacted a new commercial tariff, still makes some policy makers hesitant to mitigate.

Eric Dawar, a FX strategic expert in Scotiaabank in Toronto, said this year’s Federal Reserve Puncture is “the labor markets that go through a transitional stage” and “I think this depends on the amount of what (Powell) is to tend to cracks in the labor market.”

“Whether they are salaries and reviews, or whether the allegations that continue to climb up are up, there is a narration that can definitely move forward.”

The dollar showed the gains for a short period on Thursday after the data that the number of Americans who submit new requests to obtain the benefits of the unemployed had increased by more than three months last week.

She later added to her gathering after a separate report showed that the American commercial activity had risen in August, led by a manufacturing sector again that includes the strongest growth in demands in 18 months.

The dollar index, which measures Greenback against a basket of currencies including yen and euros, rose 0.38 % per day at 98.60, with the euro decreased by 0.34 % at $ 1.1611.

Japanese yen weakened 0.65 % against Greenback to 148.29 per dollar. The pound sterling fell 0.27 % to $ 1.342.

Economists in Goldman Sachs expect that Powell on Friday amend its comments from the Federal Reserve meeting in July, when he said that the US Central Bank was “in good position” to wait for more information.

Economists said in a report: “Instead, it may be noted that FOMC is in a good position to treat risks on both sides of its mandate, but it confirms that the negative risks of the labor market have grown after the July employment report, while emphasizing that the customs tariff is likely to have a single -time effect on the price level only,” Economists said in a report.

“We do not expect him to decisively indicate a reduction in September, but the speech must clarify the markets that it is likely to support,” they added.

Powell is seen as unlikely to indicate a price reduction with data for August before the September session.

Funds Funds has reduced expectations in September from Powell’s speech and are now 74 % of September discount, a decrease from 82 % on Wednesday, according to the Fedwatch tool for the CME group. It is also pricing at 49 basis points of discounts by the end of the year, decreasing from 54 basis points.