Hawkish Jackson Hole Rhetoric Lifts the Dollar

The US dollar shot up as hawkish comments from the Jachson Hole retreat sent yields soaring. We have broken through our recent high of 109.30, making new highs at 109.47. We are just a few ticks south of our target of 109.86. Despite the strong hawkish tone of Fed officials last week at Jackson Hole, it does feel like a technical retracement may be in store for us, so watch for support at 108.50. After that there is a vacuum zone to 107.20.