The US dollar gained ground on its peers during early Thursday

The US dollar gained ground on its peers during early Thursday trading, cancelling out most of the previous session's losses. The release on Wednesday of unexpectedly bad US services and manufacturing numbers triggered a drop in treasury yields and losses for the greenback. Any bad economic data arising from the US immediately stirs the markets, as investors see it as a potential reason for the Fed to start cutting rates. However, after the initial kneejerk reaction, we are back to business as usual, with the dollar on the front foot and investors returning to a wait-and-see-what-happens at the Jackson Hole symposium approach. For now, the prevailing view amongst analysts remains bullish for the dollar, with few expecting any signs to emerge from Jackson Hole that could indicate the beginning of the unwinding of the Fed's monetary tightening.

Ricardo Evangelista – Senior Analyst, ActivTrades