Fed’s September Rate Hike Odds Rise as Yen Strength Boosts Gold Prices

Kevin Warsh’s Jackson Hole speech has increased the Fed’s bias toward a September rate hike, while a stronger Yen has weakened the US Dollar and helped gold prices recover from recent lows.

The Federal Reserve’s likelihood of a rate increase in September has grown following Kevin Warsh’s speech at Jackson Hole, according to FX Street (ING). Warsh’s comments have shifted the central bank’s reaction function, signaling a more hawkish stance.

Meanwhile, gold prices have rebounded after falling below $4,300 to nearly a four-week low the previous day. FX Street reported that this recovery on Thursday was supported by a weaker US Dollar, which declined due to a sharp rally in the Japanese Yen.

For Japanese investors and traders, the stronger Yen and its impact on USD and gold markets highlight the ongoing influence of FX moves on commodity prices and central bank policy expectations, underlining the importance of monitoring both domestic currency strength and global monetary signals.

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執筆: Sama Kane