Dollar bullish sentiment hits three-week high! Options traders are betting that Powell will stick to his hawkish stance.

According to the Yitong Finance APP, the bullish sentiment towards the US dollar in the foreign exchange options market has reached its highest level in three weeks, as traders are betting that Federal Reserve Chairman Powell will not take an overly dovish stance on interest rate cuts. Prior to Powell's highly anticipated speech at the Jackson Hole Global Central Bankers' Annual Meeting, Bloomberg's dollar spot index's one-month risk reversal index jumped to its highest level since July 31st. At the same time, the US dollar's exchange rate against a range of other currencies reached its highest level since August 5th, with expectations of a cumulative 0.7% increase this week.