The Greenback, in terms of the US Dollar Index (DXY), is alternating gains with losses within a narrow range at the beginning of the week around the 98.20 region.
The upside momentum in the index is losing some traction on Monday, although the Greenback manages well to keep business above the key barrier at 98.00 the figure.
Markets have ignored further trade rhetoric by President Trump so far, this time casting doubts over the ability of both parties to reach a deal in the near/medium term.
Other than trade jitters, geopolitical noise stemming from Hong Kong is likely to attract investors’ attention as the issue remains far from resolved.
Events-wise, the Jackson Hole Symposium on 22-24 August will gyrate around ‘Challenges for Monetary Policy’, while all eyes are expected to be on Chief Powell’s speech on Friday.
News from the speculative community notes USD net longs receded to three-week lows during the week ended on August 13, according to the latest CFTC report. The ‘flight-to-safety’ context appears to have weighed on the buck in favour of JPY and bonds.
In the US data space, the housing sector will remain in the limelight this week along with usual Initial Claims, advanced PMIs for the current month and the FOMC minutes.
Source : FX Street