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Ripple Effects of Jackson Hole Symposium Persist
The US dollar continued its freefall across the board. Last week’s announcement by the Fed of an average inflation target has cemented the negative USD real yield narrative.
This has continued to shift sentiment away from the greenback.
The dollar index dropped to its lowest level since 2018, closing just above the 92 handle. As of today, it would signal a 5th straight consecutive monthly decline.
Euro and Pound Benefit From Sentiment Shift
The weakened dollar was evident as the euro and pound both made significant gains on Monday.
The EURUSD pair reached a 2-year high as it closes in on the $1.20 mark. The euro was additionally bolstered with positive sentiment towards today’s eurozone PMI release.
The data is set to show a second consecutive month in expansionary conditions for the sector.
Adding to frailties of the dollar, cable closed 0.25% higher as it edges towards the 1.35 psychological area.
Yesterday marked the day in whi...
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