Mitsubishi UFJ strategist Derek Halpenny said the dollar faces downside risk
ahead of a US Treasury Department Bessent speech and the Fed’s Jackson Hole
symposium. After the Treasury last week announced an increase in the size of
long-term bond repo operations, Bessent may later set out fiscal consolidation
plans. Fed chair Kevin Warsh is due to speak Friday at Jackson Hole; Halpenny
said Warsh may continue to give fewer signals on future policy and added that,
absent credible fiscal consolidation, the long end of the bond market could be
particularly vulnerable.
