US Dollar Plunges as Yen Strengthens
The US Dollar has experienced a significant decline, with the DXY index reaching its lowest level since mid-January. This sharp drop is primarily attributed to a surge in the Japanese Yen, driven by increased hedge fund interest in the currency.
The upcoming Jackson Hole Symposium is a key event for the market, with investors awaiting insights into the Federal Reserve's monetary policy outlook. While the recent economic data has shown resilience, the overall market sentiment remains tilted towards rate cuts.
Technical Outlook
The US Dollar Index is under substantial pressure, with the potential for further declines. The 101.90 level is a critical support level, and a break below this could accelerate the downward momentum.