Home Finance News DXY surpasses 104.00 as early indicators boost optimism for Powell’s speech

DXY surpasses 104.00 as early indicators boost optimism for Powell’s speech

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DXY surpasses 104.00 as early indicators boost optimism for Powell’s speech

The US Dollar Index (DXY) has reached an 11-week high as market participants anticipate Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium. The index has been bolstered by positive US economic data and bullish comments from Fed officials. Despite a slump in US Durable Goods Orders for July, other indicators such as the Nondefense Capital Goods Orders ex Aircraft and the Chicago Fed National Activity Index have shown improvement. Former St. Louis Federal Reserve President James Bullard’s hawkish remarks and comments from other officials have supported the strength of the US dollar. Furthermore, concerns over escalating tensions between the US and China have also contributed to the increased demand for the safe-haven currency.

Looking ahead, market participants will closely monitor Powell’s speech for any signals regarding future rate cuts. If Powell maintains a hawkish stance, it is likely to keep the US Dollar Index elevated. Technical analysis suggests that a clear break above the resistance level around 103.50 could further propel the index towards May’s peak of 104.70.

In summary, the US Dollar Index has hit an 11-week high ahead of Powell’s speech at the Jackson Hole Symposium. Positive US economic data and hawkish remarks from Fed officials have bolstered the strength of the US dollar. Additionally, concerns over rising tensions between the US and China have contributed to increased demand for the safe-haven currency. Traders will closely watch Powell’s speech for any indications on future rate cuts, which will likely influence the direction of the US Dollar Index.

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