Forecasting the upcoming week: Warsh's Jackson Hole debut and US inflation test a soft US Dollar
The US Dollar Index (DXY) ended the week near even with Thursday, holding near 98.80. Like Thursday, DXY traded down to the 98.50s before recovering later in the session.
The US Dollar Index (DXY) concluded the week near parity with Thursday, settling around 98.80. Throughout the session, the DXY fluctuated between the 98.50 range before recovering later. The DXY is presently near its lowest point since May. This decline is primarily attributable to the US Treasury's decision to double its purchases of longer-dated debt, which has caused yields to drop and diminished the appeal of the Greenback.
Despite this, Friday's flash Purchasing Managers Index (PMI) surveys revealed that US activity is still expanding at a rapid pace. Throughout the week, gold reached a three-month peak above $4,600, the Australian Dollar hit a multi-month high, and Crude Oil remained close to a four-week high as tensions in the Middle East persist.
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