Dollar at risk of a bigger slump as Jackson Hole looms
Aug 21 (Reuters) -The dollar remains vulnerable as Jackson Hole looms large, where Federal Reserve Chair Jerome Powell will deliver a speech. FX traders should prepare for a bigger slump in the greenback into that risk event.
The USD index has this week collapsed under the 102.002 Fibo: a 76.4% retrace of the 100.61 to 106.51 (December to April) rise. The risk grows for a bigger drop to the December 100.61 base, especially as 14-day momentum remains negative.
A break under 100.61 would add significantly to the negative outlook and see the dollar come under even more pressure across the board.
USD's fate is pinned to largest components of the index: euro, yen and the pound. The dollar slipped to its lowest this year versus the euro on Wednesday, dipped below the closely watched 145 yen level and hovered close to the more-than-one-year low to sterling reached overnight.
For more click on FXBUZ
Daily Chart: https://tmsnrt.rs/3WWNkN3
Martin Miller is a Reuters market analyst. The views expressed are his own; Editing by Alison Williams
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
