EUUR/USD Execution | 04:54:22 (UTC)

Because of expectations that the Federal Reserve would end its quantitative easing strategy sooner than expected, the United States Dollar has achieved fresh all-time highs in recent weeks.

Chair of the Federal Reserve Jerome Powell will make a speech titled "The Economic Outlook" at a lecture named "The Economic Outlook" at Jackson Hole, Wyoming, on Friday, August 27. The lecture is titled "The Economic Outlook." On March 31, it will hold a reception at the Jackson Hole Conference Center to commemorate the occasion. RSVP for the reception here.
For the United States Dollar, the market has a mixed attitude about it. Although the US Dollar (as measured by the DXY Index) has reached fresh all-time highs, investors anticipate that the Federal Reserve will withdraw stimulus at a faster rate than previously expected.

Chair of the Federal Reserve Jerome Powell will make a speech titled "The Economic Outlook" at a lecture named "The Economic Outlook" at Jackson Hole, Wyoming, on Friday, August 27. The lecture is titled "The Economic Outlook." On March 31, it will hold a reception at the Jackson Hole Conference Center to commemorate the occasion. RSVP for the reception here.
IG under the Client Sentiment Index, as we enter the last week of August, there is a mixed tilt in favor of the US Dollar.

In recent months, trading analysts have begun to forecast that the Federal Reserve would phase down its stimulus package sooner than initially planned, maybe as early as at the start of this year. In response to the strengthening of the US Dollar (as measured by the DXY Index) last week, it rose to new yearly highs for the first time since 2007 (see chart below). Over October 2020, the EUR/USD exchange rate, which is the most significant component of the DXY Index, has fallen by -0.81 percent, resulting in a close below 1.1700, which is a new low for the pair since that time period. As a result of the stock market's declines, the dollar/yen exchange rate only climbed by 0.16 percent on the day.

Despite growing delta variation worries eroding trust in global growth-sensitive currencies, the US dollar gained gains across the board in the third quarter of 2018. These currency movements occurred against a backdrop of growing delta variant worries. The pound fell 1.76 percent, the Australian dollar fell -3.13 percent, the New Zealand dollar fell -2.94 percent, and the Canadian dollar gained 2.47 percent. I expect that there will be an influx of activity in event risk towards the end of August, the vast majority of which will originate in the United States. Five 'high-rated' activities have been scheduled for the Jackson Hole Economic Policy Symposium, which will take place over the course of a week in the Wyoming wilderness. These occurrences have the potential to generate significant event risk-based volatility in the stock market, which would be detrimental to investors.

On Monday, August 23, a flood of economic statistics will be revealed, it will release the first of which on Tuesday, August 24. Besides the Chicago Fed's July national activity index, the August Market Manufacturing PMI (flash) and the July existing home sales figures for the United States are also expected to be released in the coming weeks.
I will release data on new home sales in the United States for the month of July on Tuesday, August 24, according to the National Association of Realtors.
According to the plan, the data on durable goods orders in the United States will be issued on Wednesday, August 25, at the regular hour.
The yearly Jackson Hole Economic Policy Symposium will open with a reception on Thursday, August 26th, and will continue through the following day. The Gross Domestic Product (GDP) report for the second quarter, as well as the weekly jobless claims statistics, will be among the economic data issued this week, according to the National Bureau of Economic Research.
On Friday, August 27, two reports will be released: the July US personal consumption expenditures report (which is the Federal Reserve's preferred measure of inflation) and an update on the August US Michigan consumer confidence index (which is the Federal Reserve's preferred indicator of inflation) (both of which will be released on Friday, August 27). President Powell will deliver his Jackson Hole address on Monday, March 25th, at 10 a.m. Eastern Daylight Time/1 a.m. GMT, according to a copy of the speech. The Jackson Hole talk will be titled "The Economic Outlook," according to the text of the speech. The Atlanta Fed has revised downward catapan growth estimates because of new information received regarding the third quarter of this year. The previous estimate of +6.2 percent annualized growth has been revised to a revised estimate of +6.1 percent annualized growth because of new information received. Based on newly available information, the Federal Reserve cut its prediction for real estate investment growth in the third quarter to 3.0 percent from 3.4 percent in the prior forecast, according to the Federal Reserve.

On August 25, 2011, the Atlanta Fed will release its most current revision to its GDPNow estimate for the third quarter of 2011, which will be released on Wednesday, August 25, 2011.

When we examine the likelihood of a Fed rate rise in combination with the yield on the 2-year US Treasury bond, we can determine whether the bond market is reacting in a manner similar to that which occurred in 2013/2014 when the Fed began implementing its tapering measures. The butterfly, following historical trends, keeps an eye out for changes in the yield curve that are not parallel to those in the United States. According to the historical trend of interest rate increases, intermediate rates should rise at a quicker rate than both short- and long-term rates soon. We can see that, although the July FOMC minutes, which clearly distinguished between rate hikes and tapering, had no impact on the probability of a rate hike, the US yield curve is changing in a way that suggests that the Fed will become more hawkish soon, as illustrated in the chart below. Although there are still 87 basis points (bps) of interest rate rises discounted until the end of 2023, the 2s5s10s butterfly has climbed to its highest rate ever since the Federal Reserve began talking about terminating its bond-buying program in June.

The combined impact of rising US Treasury yields – particularly when intermediate rates exceed both short- and long-term rates – combined with a higher likelihood of a Federal Reserve rate hike has resulted in a more favorable trading environment for the US Dollar, according to historical data According to a report from Bloomberg, traders increased their net-long US Dollar holdings to 19,206 contracts from 18,880 contracts for the week ended August 3. Under statistics provided by the Bloomberg News agency, the net long position in the US Dollar has maintained around its highest level since the second week of March 2020, according to the data. The fear of a Coronavirus pandemic reached its apex in the financial markets). As we near the end of August, the Client Sentiment Index reveals that consumers remain positive about their financial futures, according to the statistics.
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