The Dollar Index (DXY) continued its impressive run as risk-off sentiment, upbeat data and hawkish Fed minutes provided support. Will Jerome Powell inject further bullish momentum at Jackson Hole?
US Treasury Yields saw a slight pullback on Friday following huge gains for the longer-dated treasuries in particular with the US 10 Y hitting highs last seen in 2008. The US 2 Y on the other hand took out last week’s highs but didn’t have the same aggressive move as witnessed on longer dated yields.THE WEEK AHEAD: JACKSON HOLE SYMPOSIUM AND MID-TIER US DATA
Heading into next week and we have quite a bit of mid-tier US data as well as some high impact data. However, the biggest risk event next week will no doubt be the Jackson Hole Symposium with last year's event stoking some serious volatility and could be a determining factor in the US Dollars direction ahead of the September Fed Meeting.
We do have durable goods order and the final Michigan Consumer Sentiment numbers as well, but I do expect these to take a backseat to Jackson Hole.TECHNICAL OUTLOOK AND FINAL THOUGHTS Looking at the technical perspective and the Dollar Index has now seen a change in structure on a weekly chart having taken out the previous swing high around the 103.00 handle. This is massive in my opinion as even if we do see the DXY face selling pressure it could be nothing more than a retracement before the next leg to the upside.
The Daily chart has also crossed a critical hurdle as we have broken back above the 200-day MA, the first time since November 2022. Of course, it is important to note that the RSI
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