Forex

The DXY is rallying strongly towards the July high as we head towards a pivotal time of the year for the risk spectrum.

Market sentiment soured last week as Federal Reserve officials stood firm on further rate tightening. The US Dollar surged higher, pressuring US stocks, cryptos and gold. Traders await Jackson Hole.

European indexes began the week on the back foot as risk appetite waned. Firmer US Dollar indicative of investor caution in global markets

The S&P 500 dropped from the recent high as Fed speakers reaffirmed the appetite for more hikes, bolstering the dollar. PCE data in focus after cooler CPI earlier this month

The US dollar has picked up where it left off last week and is pushing ever higher, shunting gold back towards $1,700/oz.

The euro remains under pressure this week as markets look forward to the Jackson Hole Symposium later this week, while EUR.USD tests 1.00.

The US Dollar made fresh high before it gave up some ground today after rate were reduced in China. The upcoming Jackson Hole symposium may provide cluses for USD direction.

The Japanese Yen has weakened against the US Dollar and the Swiss Franc as historical peaks in USD/JPY and CHF/JPY come into view. Are the trends back in play?

The Australian Dollar is facing increased headwinds as China's power crunch worsens. A PBOC rate cut expected today may not offer much relief to AUD/USD.

Fed speakers are expected to deploy an aggressive hawkish tone this week.