
US Dollar Price Action Setups: USD/JPY, EUR/USD
It was a strong move for the US Dollar as USD/JPY pushed back-above the 160.00 level, and the question for next week is what policymakers want to do about it.
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It was a strong move for the US Dollar as USD/JPY pushed back-above the 160.00 level, and the question for next week is what policymakers want to do about it.

Warsh's comments accelerated the EUR/USD selloff, raising the stakes as buyers look to stabilize the broader recovery.

The dollar surged across the board after the Fed Chair Kevin Warsh surprised with a hawkish-leaning speech at the Jackson Hole summit. All the bearish dollar bets that had been accumulated since last Friday on the back of data weakness and bond market troubles had to be squared and that triggered a short squeeze rally for the dollar. Gold and silver dropped, as a result, as too did bitcoin, while US indices were giving back earlier gains.

U.S. stocks are edging lower on Friday, giving back some of yesterday's gains after Nvidia's strong outlook revived the tech trade. The focus has now shifted firmly to Fed Chair Kevin Warsh's Jackson Hole speech, with investors looking for more clarity on the outlook for interest rates.

For much of this week, the EUR/USD has been edging lower with the US dollar regaining some ground after last week’s sell-off that was triggered, in part, by the bond market worries. Investors have been unwilling to bet further against the US dollar so far this week ahead of Kevin Warsh’s keynote speech at the Jackson Hole summit, due later today.

A bullish breakout has pushed AUD/CAD to its highest level since early 2021. Whether it can clear 0.9994 may determine if the move extends well above parity.

Historical Jackson Hole returns point to elevated Nikkei 225 volatility around Fed speech day, with Nasdaq 100 direction hinging on Kevin Warsh.

It has not been an easy week for the Japanese yen. Over the last four trading sessions, USD/JPY has posted a move of only around 0.3%, reflecting a market that continues to lack clear direction and remains trapped in a phase of neutrality.

Aussie has advanced in eight of the past nine weeks, but the next technical hurdle could determine whether bulls can sustain the broader advance.

After surging over $15,000 in the past 10 days alone, there is risk of a near-term pullback if Warsh says anything remotely hawkish at Jackson Hole - what are the levels to watch from here?

Gold's price action has changed notably during the week. Over the last four trading sessions, the precious metal has advanced only slightly more than 1%, highlighting a clear slowdown around the $4,600 per ounce area.

U.S. stocks are heading higher on Thursday, with technology leading the move after Nvidia's stronger-than-expected outlook revived confidence in the AI trade.

The Jackson Hole Economic Symposium has brought some large shockwaves to markets over the past 15 years but this is the first for new FOMC Chair Kevin Warsh.
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