Overview

• The US dollar fell to its lowest level in over a year, continuing a downward trend since Jackson Hole.
• Sterling rose to its highest point since March 2022, benefiting from the weaker US dollar.
• Market expectations are growing for significant Federal Reserve rate cuts in September.
• US consumer confidence increased in August, but market reactions were muted.
• Other currencies, including the Canadian and Australian dollars, also gained against the US dollar.