• The US Dollar trades substantially softer, touching a seven-month low, at the start of the week. 
• The Greenback continues eking out losses after Friday’s turmoil. 
• The US Dollar index trades on the brink of entering the 101-region and might face more downside. 

The US Dollar (USD) trades substantially softer this Monday, touching its lowest level since mid-January, mainly driven by a more than 1% appreciation of the Japanese Yen (JPY)  against the Greenback. . The Commodity Futures Trading Commission (CFTC) reported on Friday that hedge funds are net long on the Japanese Yen, and Asian and European investors seem to follow through on Monday. . As the Japanese Yen accounts for 13.6% of the US Dollar Index (DXY), the rise weighs on the index’s performance this Monday, pushing it to lows not seen in roughly seven months. 

On the economic data front, a rather soft start for the data this week where all eyes will be on Wyoming at the end of the week for the annual US Federal Reserve’s Jackson Hole Symposium. The event will have the crème-de-la-crème of central bankers speaking, including Fed Chairman Jerome Powell, and is known for being the occasion for the Fed to signal a change in monetary policy outside of its scheduled meetings. In the run-up to that event, several headlines will come out from other central bankers, and the US Purchasing Managers Index (PMI) data on Thursday will give the latest insights about the state of the economy.