US dollar to tread water for now
The dollar is still set to decline medium term because the Fed has to keep easing. However, markets rarely move in a straight line and Powell may not reveal much at Jackson Hole this week. The lack of yield curve control and average inflation targeting from the FOMC minutes was enough to strengthen the dollar this week. If Powell does not give the USD bears a reason to push lower then the technical retracement below has legs. The DXY putting in a false break of the weekly inside bar from 92.50.
