- The DXY Index looks slightly bullish around the 103.50 region.
- The markets attention shifts to the Jackson Hole event.
- Durable goods orders and weekly reimbursement requests appear on the economic calendar.
The US dollar, as measured by the DXY index, regains some balance and approaches the 103.50 area again during the European session on Thursday.
DXY Index Focuses Spotlight on Jackson Hole Meeting
The DXY index regains some composure and manages to partially reverse Wednesday’s sharp pullback amid growing anticipation ahead of the Jackson Hole Symposium and Fed Chairman Jerome Powell’s speech on Friday.
The dollar rally also comes amid the so far lack of traction in US yields along the curve, which appears to have tempered the weekly decline somewhat despite the Fed’s stance Long-term tightening seems to continue to hold sway among market participants.
Aside from the Wyoming event, weekly initial requests, the Chicago Fed National Activity Index and July Durable Goods Orders will be released during today’s American session.
What can we expect around the DXY index?
The DXY Index appears to have entered a consolidation phase at the high end of the range and after recent multi-week highs around the 104.00 area (23 Aug).
Meanwhile, additional support for the dollar comes from the good health of the US economy, which appears to have reignited the narrative around the Federal Reserve’s tightening stance.
On the other hand, the idea that the dollar could face headwinds in response to the Fed’s data-dependent stance in the current context of persistent disinflation and cooling labor market seems to be losing steam of late.
Relevant DXY Index Levels
At time of writing, the DXY Index is up 0.11% on the day, trading at 103.47. A break of 103.98 (Aug 23 high) would open the door to 104.69 (May 31 high) and 105.88 (March 8 high). On the flip side, immediate support appears at 103.13 (200-day SMA), followed by 102.30 (55-day SMA) and 101.74 (August 4 low).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
