US dollar index retreats from 2-week highs

On Friday, the US dollar started to rise in the market on Friday after Janet Yellen remarks from Jackson Hole. Greenback continued to rise on Monday during the Asian and the European sessions but in New York the rally lost strength.

The greenback, tracked by the US Dollar Index, peaked on Monday at 95.75, the highest since August 12 but then pulled back erasing the day’s gains. Near the end of the session it was standing at 94.45, around Friday’s closing price. Intraday technical indicators favor an extension of the correction but on a wider perspective the US dollar still shows some positive signals.

From a fundamental perspective, today the US dollar lost strength amid risk appetite. In Wall Street, the Dow Jones was up 0.57% while the Nasdaq was rising 0.37%. In the bonds market, the US 10-year yield declined, falling from 1.620% to 1.565% and partially offset Friday’s moves.

Today US data has little impact on the dollar. US personal spending rose a seasonally adjusted 0.3% in July, while personal income climbed 0.4%, both matching expectations. The key number of the week will be released on Friday with the US official employment report.