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Greenback Extends Pullback From Recovery Highs

LATAM
  • High beta G10 currencies are gaining heading into the US session while the greenback trades generally weaker. This puts the USD Index further off the recovery high printed earlier this week at 109.27, but pullbacks are expected to remain shallow ahead of the Jackson Hole Policy Symposium which formally kicks off this evening.
    • Technical support for the dollar index resides at 107.5036, the 38.2% Fib retracement for the August upleg.
  • Markets watch for confirmation of the full JH agenda, with a speech from Fed's Powell the focus on Friday. On the docket for Thursday, markets watch the secondary Q2 GDP read (expected to be revised higher to -0.7% from -0.9%). MNI also speak with Philly Fed's Harker, who hasn't commented on monetary policy directly since late June.

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