US Dollar Rises Ahead of Jackson Hole Symposium

The US dollar index, which measures the greenback's performance versus a basket of other major currencies, touched a two-month high during early Wednesday trading. The Jackson Hole symposium starts tomorrow, and treasury yields and the dollar are rising, indicating that the prevailing view amongst traders is that US interest rates will remain high for a prolonged period. The stickiness of inflation and the resilience of the economy are likely to figure in Jerome Powell's speech on Friday, and, judging by the performance of the dollar, investors don't expect the chairman of the Fed to provide any hints or clues that may open the door for lower rates anytime soon. Against this background, the dollar is likely to remain supported throughout the rest of the week.

Ricardo Evangelista – Senior Analyst, ActivTrades