Hey traders, wellcome back!
Last week, the US dollar came under strong selling pressure, mainly after the US Treasury announced plans to significantly increase buybacks of long-term government bonds. Markets took this as an attempt to support bond prices and limit long-term yields, which raised fresh concerns about US debt and potential dollar debasement. As a result, money moved out of the dollar and into assets such as metals and even cryptos, while stocks are still in this pullback.
This week should be another important one for the dollar. On Tuesday we have US Consumer Confidence and New Home Sales, while Wednesday is the big data day with Durable Goods, the second estimate of Q2 GDP, and most importantly PCE inflation, the Fed’s preferred inflation measure. Later in the week, attention will shift to the Jackson Hole Symposium, with Fed Chair Kevin Warsh speaking on Friday. His comments on inflation, interest rates and the Fed outlook could be very important for the next move in the dollar and US yields.
I will cover this and much more in our webinar later, so make sure to be with us. CLICK HERE
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