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Dollar Strengthens in Advance of Jackson Hole

The U.S. Dollar posted gains on Tuesday ahead of this week’s key economic event, the Jackson Hole Economic Symposium, where both Fed Chair Janet Yellen and ECB Chief Mario Draghi are expected to speak. Quantitative Tightening is likely the big topic of discussion as investors look for clues on the direction of interest and currency rates.

2017 has proved to be a tough year for the U.S. Dollar, currently trading nearly 10% below this year’s intraday highs. Geopolitical concerns coupled with challenges passing legislation in Washington have impacted investors’ confidence in the long withstanding strong Dollar as they move to more traditional safe-haven assets.

US Dollar Futures Index Chart

The above chart showcases the U.S. Dollar Index Futures, a leading benchmark of the international value of the U.S. Dollar, since January 2017. The index traded firmly in bearish territory since mid-May as price action dipped below both the 200 and 100 period SMA’s.

Up nearly .4% on the trading day following a nearly 15-month low hit earlier in August, a slight rebound is in place. However, most experts agree August exhibits more of a consolidation chart pattern as the greenback is only up .4% on the month.

This chart was created using the award winning NinjaTrader platform and free end of day Kinetick data. Explore NinjaTrader’s myriad of pre-built indicators, drawing tools and other technical analysis tools. Download NinjaTrader for free!