# FED Sparks Currency Rate Moves, Dollar Pares Losses, Pound-Dollar Dips From 2020 Best | Exchange Rates UK

> Fed Chair Powell announced at Jackson Hole that the Fed will target 2% inflation on average in a flexible framework, with greater priority on employment. The dollar initially fell before recovering as short positions were covered.

- Date: 2020-08-28 · published 2020-08-28T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/51869-fed-sparks-currency-rate-moves-dollar-pares-losses-pound-dollar-dips-from-2020
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A policy shift toward tolerating higher inflation and keeping rates low over longer periods tends to weaken the dollar over time, which supports dollar-priced commodities.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-03-02 | [Euro Exchange Rate Reaches 5-Week-Best As Rivals Pound Sterling And Dollar See Large Losses \| Exchange Rates UK](https://feedsoft.ai/events/6188-euro-exchange-rate-reaches-5-week-best-as-rivals-pound-sterling-and-dollar-see.md) | -0.8% | +4.0% |
| DXY | 2019-10-31 | [GBP/USD: Pound Gains vs Dollar As Fed Cuts Rates - Currency Live](https://feedsoft.ai/events/56803-gbp-usd-pound-gains-vs-dollar-as-fed-cuts-rates-currency-live.md) | -0.1% | +0.8% |
| DXY | 2020-11-05 | [Pound-Dollar Rate Rallies 1% As BoE Fails To Mention Negative Interest Rates \| Exchange Rates UK](https://feedsoft.ai/events/50419-pound-dollar-rate-rallies-1-as-boe-fails-to-mention-negative-interest-rates.md) | -0.8% | -2.9% |
| DXY | 2019-06-20 | [Dollar extends losses on Fed rate cut bets](https://feedsoft.ai/events/7441-dollar-extends-losses-on-fed-rate-cut-bets.md) | -1.1% | -0.8% |
| DXY | 2017-10-31 | [US Dollar-to-Yen Exchange Rate Uptrend To Continue To Be Supported By BoJ Policy \| Exchange Rates UK](https://feedsoft.ai/events/68683-us-dollar-to-yen-exchange-rate-uptrend-to-continue-to-be-supported-by-boj.md) | -0.2% | -1.4% |

## Sources

- exchangerates.org.uk: https://www.exchangerates.org.uk/news/30482/2020-08-28-fed-sparks-currency-moves-dollar-pares-losses-pound-dollar-dips-from-2020-best.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.