The US dollar index held above 104 levels today, Friday, reaching its highest level in 11 weeks and on its way to achieving gains for the sixth consecutive week, as investors await the Jackson Hole speech of Federal Reserve Chairman “Jerome Powell” in search of the direction of the next monetary policy path in the United States. Analysts expect the central bank to continue its hawkish stance and keep interest rates high for a longer period to counter inflationary risks, in addition to emphasizing that policy decisions will depend largely on incoming data.
However, two Fed officials stated yesterday that the surge in bond yields may help the institution’s efforts to slow the economy and bring inflation back to its 2% objective and that additional interest rate rises may not be necessary. The US Deputy Secretary of the Treasury stated on Thursday that while some economies and emerging regions that depend on Beijing for growth may experience difficulties as a result of China’s slow economic growth, the US economy is well-positioned to weather the storm. Deputy Secretary of the Treasury Addimo said, “The Treasury Department is closely monitoring the economic developments in China, whose economy is faltering in the face of worsening real estate market stagnation, weak consumer spending, and reducing credit growth.”
The dollar witnessed a buying impulse during this week, as buying was more clear against the euro and the pound sterling, now trading around 104.20 points levels, based on its impulse on the 20-, and 50-day moving averages, and forming a price gap around 104 points levels, so it is likely to decline The index to retest the levels around 104 points and close the gap, then the buyers may push the index to rise further and target the resistance levels around 104.35, 104.50 points, and in the event of a breach, it will head to target a new top around the resistance levels 105.015.
