Here’s what you need to know on Monday, August 31:
The dollar plunged on Friday following US Powell’s announcement last week. The Federal Reserve has changed monetary policy, placing more emphasis on jobs and saying it could let inflation exceed the 2.0% target.
Japanese PM Shinzo Abe has resigned on health issues. After eight years at the helm, Abe’s decision to step down spurred risk aversion by the end of the week. Still, he said he would continue to lead the country until a new PM is approved.
The pound could suffer a setback earlier in the week, amid news that the UK Minister of Finance Sunak is considering a series of tax increases to offset extraordinary expenses related to the coronavirus pandemic. However, other cabinet members have opposed such a move, but instead want to consider spending cuts.
Wall Street closed with gains, despite the risk aversion that dominated the first half of the day after Abe resigned. Yields on US Treasuries eased on the last trading day of the week, but closed it with gains.
Gold closed with gains about $ 1,964 per troy ounce, after falling in the previous two weeks. Crude oil prices have remained stable.
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