The dollar was pushed lower after an appalling US services PMI reading yesterday but is looking to regain more control again today following the good start to the week. EUR/USD continues to keep under parity while risk tones are still rather soft, adding to the fact that 10-year Treasury yields are still above 3% and the Chinese yuan is continuing to weaken further.
Put everything together, there is a good argument for the dollar to keep a firm stance ahead of Fed chair Powell’s speech at Jackson Hole. That remains the key risk event to be mindful about this week.