US Dollar On Top: All Eyes On Jackson Hole - NewsBreak

Although risk assets rallied at the end of last week, weaker than expected US July retail sales data and China's July data slate including industrial production and retail sales, helped to intensify growth concerns. As it is, many indicators are showing that we are past peak growth. US economic surprises are becoming increasingly negative as reflected in the Citi US economic surprise index, which has fallen to its lowest level since May 2020. Combined with intensifying Delta virus concerns, worsening supply chain pressures and sharply rising freight rates as reflected in the spike in the Baltic Dry Index to its highest since June 2008, it has led to a marked worsening in investor risk appetite. This has been compounded by China's regulatory crackdown and rising geopolitical risks in Afghanistan.