Dollar Weakens Further on Risk-On Mood, Canadian CPI Takes Center Stage
Dollar continued its decline overnight as risk-on sentiment prevailed, with S&P 500 and NASDAQ notching their eighth consecutive positive session. Investor optimism has been buoyed by recent economic data suggesting that the US economy is on track for a soft landing, sidestepping a recession. However, it’s important to remember that despite the recent gains, major indices remain capped well below their July highs. The markets are still vulnerable to any negative economic surprises, which could quickly shift sentiment. In addition, the looming uncertainty of the presidential elections later this year would limit enthusiasm for bold bets. In the immediate term, all eyes are on Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium, which is expected to e a significant market mover.
Dollar continued its decline overnight as risk-on sentiment prevailed, with S&P 500 and NASDAQ notching their eighth consecutive positive session. Investor optimism has been buoyed by recent economic data suggesting that the US economy is on track for a soft landing, sidestepping a recession. However, it’s important to remember that despite the recent gains, major indices remain capped well below their July highs. The markets are still vulnerable to any negative economic surprises, which could quickly shift sentiment. In addition, the looming uncertainty of the presidential elections later this year would limit enthusiasm for bold bets. In the immediate term, all eyes are on Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium, which is expected to e a significant market mover.
