Daily digest of market movers: DXY Index reaches seven-month low ahead of Jackson Hole Symposium

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  • At the start of the week, the DXY Index has been recording a consistent fall, now at its lowest mark in seven months against all major global currencies.
  • The US economy, in contrast, showcases stability with a benign rate of inflation and solid domestic demand.
  • The marketplace, notwithstanding, speculates an imminent dovish spree by the Fed starting in September. Yet the non-aligned reality of the US economy and a hawkish stance from the Fed brings forth a potential resurgence opportunity for the DXY Index in future trade sessions. Jerome Powell’s words at the Jackson Hole Symposium will be key.
  • While the odds of a sharp 50 bps cut in September have come down, the market still anticipates nearly 100 bps of total easing by year-end.
  • This also extends to 175-200 bps of easing over the impending 12 months.


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