The index of USD (DXY) moved in a limited range in a tight range between 92.80 to 93.00. That was happened in the Asian session trading on 25 of August 2021.

It seems that market is not worrying too much about the delta variant spread anymore. However, many parties are concerning further about the Jackson Hole symposium that will be done soon. 

The FDA or the US food and drug administration gave their full permit for the COVID-19 vaccines, especially for the BioNTech and Pfizer. That agreement made to achieve an aim. 

There is a chance that that thing may acceleratebthe vaccination programs in America. That country may be able to handle the coronavirus pandemic at the beginning of the year. 

Will the Tapering Plan be Realized? 

An opinion from a health expert above is becoming a good news. That reduce the concern about the effect of this delta variant wave, especially for the global demand right now. 

That is why; it reduce the market demands to the US dollar which is known as the safe haven asset. In the otger side, the market concerns about The Fed policy change is still so strong. 

It is because the FOMC meeting minutes confirmed the expectation of tapering announcement on this year of in 2021. A question then appear in the surface about that. 

Will the actual announcement due to the tapering plan from the Fed be done in that Jackson Hole symposium? Based on the plan, the symposium will be done in 26 of August 2021.

Many Rumors are Now Spreading 

If that plan isn’t announced in that date, the next FOMC meeting in 21 – 22 September can be the right time. Some analysts think that Jerome Powell will not talk about the timeline yet. 

He may not announce about the beginning of tapering in this month. However, some people predict that he may say about it in the Jackson hole symposium that will be held later. 

That thing can become a risk for the greenback. The USD has a chance to be stronger if that speculation is confirmed. However, that may be a slip if this speculation is rejected. 

The concern about a global growth or the reduction of that worry can still be a motor to move the US dollar. The risk is that it may make the USD increase on Friday trade in the market. 

Tapering may be Started on October

The situation above can be happened if Powell said that the economy data is in line with the short – term tapering. An analyst believes that The Fed will announce their tapering plan in September.

After that, they will start it on October and end the tapering at the end of September 2022. That is why; he think that the USD still has a space to be stronger further although it is corrected this time.

Before, that currency was rising on Thursday after James Bullard as the president of the fed St. Louis area gave his comment. That comment was in the hawkish direction and feel. 

He talked about his doubts on the slowing expectation of the US inflation increase. That was happened in a moderate speed. That is why; the America’s central bank must do something. 

The Bullard Opinion due to The Tapering

Bullard said that the Central bank of America needs to start the tapering on the obligation purchase program. They may don’t need the asset purchase this time in the market. 

However, they must do the tapering as soon as possible and finish it at the end of the first quarter next year. After that, they can evaluate the inflation and overall situations happened. 

Bullard is not the only representative who gives the hawkish opinion. In an event with the Fox Business, the Fed president for Kansas City area, Esther George, also has the similar thinking. 

He indicated that the organization is ready to run the plan for reducing the stimulus. The asset purchase reduction can be done with the strong inflation and expected employment growth.