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Jackson Hole Annual Meeting Releases Dove Signal, U.S. Treasury Yield Curve Is Significantly Steeper

Post time: 2025-08-25 views

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Hello everyone, today XM Foreign Exchange will bring you "[XM Official Website]: Jackson Hall Annual Meeting releases dovish signals, and the US Treasury yield curve has steepened significantly." Hope it will be helpful to you! The original content is as follows:

On August 25, the US dollar (USD) held its ground in the early trading on Monday, but it was difficult to achieve recovery momentum after a sharp sell-off during the US session on Friday. Later in the day, the Chicago Fed National Event Index and July new home sales data will appear in the U.S. Economic Calendar. In addition, the Dallas Federal Reserve Bank will release its Texas manufacturing survey in August.

Feder Chairman Jerome Powell said in a speech entitled “Economic Outlook and Framework Review” at Jackson Hall’s annual economic seminar on Friday that they will adopt a new policy framework for flexible inflation targets and eliminate the “makeup” strategy for inflation. Powell acknowledged that downside risks in the labor market are rising, while noting that the inflationary impact of tariffs can be reasonably expected to be short-lived. The remarks triggered a sell-off in the dollar over the weekend, with the dollar index falling nearly 1% on the day, erasing all weekly gains in the process. Meanwhile, major Wall Street stock indexes rose more than 1% on Friday. U.S. stock index futures fell 0.1% to 0.2%.

Basic foreign exchange market trends:

Euro/USD rose sharply on Friday and closed slightly higher this week. In early European trading on Monday, the pair was still in the consolidation phase above 1.1700. Market participants will closely monitor IFO-current assessment and business prosperity data from Germany.

The GBP/USD rose more than 0.8% on Friday, ending a four-day decline. The pair remained relatively calm and fluctuated above 1.3500 during the European period.

The US dollar/yen fell about 1% on Friday and traded above 147.00. Japanese data shows that the leading economic index in June has been from May106.1 dropped to 105.6.

Bulle market fundamentals:

Gold fluctuated in narrow channels earlier and easily stayed above $3360.

Analysis of major currency trends:

Euro: The intraday bias of the euro/dollar remains upward as it is rising from 1.1390. The correction pattern starting from 1.1829 should have been vejck.cnpleted, with three waves falling to 1.1390. Further rebound should first retest the 1.1829 high. Firm breakthroughs will resume a larger upward trend. Currently, as long as the 1.1582 support level remains unchanged, the risk will remain upward in case of a fallback.

Jackson Hole Annual Meeting Releases Dove Signal, U.S. Treasury Yield Curve Is Significantly Steeper(图1)

Pound: The intraday bias of pound/dollar remains neutral at present. Overall, the price movement starting from the 1.3787 high is seen as a correction model. On the upside, breaking through 1.3594 will resume the rebound from 1.3140 and retest the 1.3787 high. Firm breakthroughs will resume a larger upward trend. At present, as long as the 1.3389 support level is held, the risk will remain upward to prevent a decline.

Jackson Hole Annual Meeting Releases Dove Signal, U.S. Treasury Yield Curve Is Significantly Steeper(图2)

JPY: USD/JPY remains in the range above the 146.20 support level, and the intraday bias remains neutral. On the downside, a firm breakthrough of 146.20 will resume the decline from 150.90. Furthermore, this indicates that the rebound from 139.87 has been vejck.cnpleted as a correction to 150.90. It should further decline to 142.667 support level to confirm. On the plus side, breaking through 148.76 will rise again, retesting 150.90.

Jackson Hole Annual Meeting Releases Dove Signal, U.S. Treasury Yield Curve Is Significantly Steeper(图3)

The above content is all about "[XM official website]: Jackson Hall annual meeting releases dovish signals, and the US Treasury yield curve has steepened significantly". It was carefully vejck.cnpiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your transactions! Thanks for the support!

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