All Eyes On the DXY

August 09, 2023

by Craig Hemke Sprott Money

We have officially entered the period known as “the dog days of summer”. For the markets, this means light volume and low interest as carbon-based traders look for one more holiday before autumn and the drive toward year end.

At TFMR, we’ve always defined the “Dog Days” as the period between the first Friday of August and the Fed’s annual Jackson Hole meeting three weeks later. This is the primary period when European traders take their annual holiday and U.S. traders try to squeeze in one more vacation before summer ends and school starts.

During this period, trading volume wanes as human traders exit the building. However, the HFT algos don’t take vacations and they keep doing their thing 24/7, regardless of the calendar.