The US Dollar (USD) is slightly down in the Asian trading session at the start of the week. The US Dollar Index (DXY), which gauges the Greenback’s value against its peers, corrects 0.1% to near 99.58 after a strong Friday.
TD Cowen’s Washington Strategy team, led by Chris Krueger, notes that a durable rebound in the Dollar hinges on stronger US policy follow-through and renewed upside surprises in US data.
The Federal Reserve chair used the largest speaking slot on the calendar to commit to nothing and the futures market repriced September anyway.
US Dollar Index (DXY) rallies on Friday, gaining 0.36% to trade around 99.50 at the time of writing, as Federal Reserve (Fed) Chair Kevin Warsh’s hawkish remarks at the Jackson Hole Symposium prompt investors to sharply reassess the outlook for US interest rates.
Brown Brothers Harriman’s (BBH) Elias Haddad notes the US Dollar (USD) is mixed near a one‑week high as major FX pairs test key technical levels, including EUR/USD at its 200‑day moving average and USD/JPY near 160.00.
MUFG’s Derek Halpenny and Abdul-Ahad Lockhart argue that Jackson Hole only becomes a significant FX event for the Dollar when the Federal Reserve Chair delivers a clear policy surprise or commits to future action.
ING’s Chris Turner notes a quiet, risk-positive week for global markets, with low volatility and mixed G10 FX, as the Dollar debasement theme fails to extend.