US Dollar resumes the downside near 95.50 ahead of Jackson Hole

• The index moves lower to the mid-95.00s ahead of Powell’s speech.
• Yields of the US 10-year note navigate the 2.83% area.
• The Jackson Hole Symposium and Durable Goods Orders next on tap.

The greenback, in terms of the US Dollar Index (DXY), has returned to the negative territory and is now navigating the 95.50 region, partially reverting yesterday’s up move.

US Dollar looks to Powell

The index is fading Thursday’s advance and returning to the mid-95.00s amidst the re-emergence of the selling mood around the buck, while no new catalysts have turned up in the USD-sphere.

In the meantime, market participants continue to look to US-China trade effervescence as one of the main drivers behind the price action in the greenback, while speculations and rumours on a potential impeachment to President Trump have been slowly gathering traction.

In the data space, July’s Durable Goods Orders are coming up next, although investors will keep their focus on the speech by Chief Jerome Powell at the Jackson Hole Symposium. Consensus, however, expects Powell to deliver a tone in line with the observed in the latest FOMC minutes (Wednesday).

US Dollar relevant levels

As of writing the index is losing 0.08% at 95.55 facing the immediate support at 94.96 (55-day sma) followed by 94.93 (low Aug.22) and finally 94.08 (low Jul.26). On the upside a break above 95.49 (high Aug.23) would aim for 96.01 (10-day SMA) and then 96.98 (2018 high Aug.15).