Possible False Breakout

The US Dollar showed a reversal following the S&P PMI’s today, this was following weak Eurozone and UK PMI’s earlier today. This does suggest US “exceptionalism” may be coming to an end (for now) and that the US could suffer the same fate as the rest of the world. This move comes just before the Jackson Hole Symposium, which will showcase Federal Reserve Chair Jerome Powell on Friday. On Friday, if traders  think that the FOMC may be finished hiking rates for the remainder of 2023, the USD could accelerate losses into the week end. A break back below the 200DMA would also suggest the US Dollar may be in a longer term range bound environment.

Blake Morrow

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Steve Voulgaridis