Traders' Rate Hike Bets Surge, Dollar Jumps Ahead Of Jackson Hole
Portfolio Pulse from Piero Cingari
Ahead of the Fed’s Jackson Hole Symposium, market participants are increasing their bets on a potential rate hike. The implied probabilities of a November rate hike have reached 47%, according to current Fed futures prices. The U.S. dollar index (DXY), tracked by Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), is up 0.3%, reaching highs not seen since June 8, 2023. Investors are closely watching the remarks of Fed officials for any signs of policy changes.
August 24, 2023 | 3:13 pm
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Invesco DB USD Index Bullish Fund ETF (UUP) is up 0.3% as the U.S. dollar strengthens ahead of the Fed’s Jackson Hole Symposium. The ETF could see further movement depending on the outcome of the symposium and any potential rate hikes.
The UUP ETF tracks the performance of the U.S. dollar against a basket of currencies. As the market is anticipating a potential rate hike, this has led to a strengthening of the U.S. dollar, which in turn has led to an increase in the value of the UUP ETF. The ETF's performance could be further impacted by the outcome of the Fed’s Jackson Hole Symposium and any subsequent policy changes.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100