The US Dollar showed a reversal following the S&P PMIs, this was following weak Eurozone and UK PMIs earlier. This does suggest US “exceptionalism” may be coming to an end (for now) and that the US could suffer the same fate as the rest of the world.
This move comes just before the Jackson Hole Symposium, which will showcase Federal Reserve Chair Jerome Powell on Friday. On Friday, if traders think that the FOMC may be finished hiking rates for the remainder of 2023, the USD could accelerate losses into the weekend.
A breakback below the 200 DMA would also suggest the US Dollar may be in a longer-term range-bound environment.
