Dollar Retreats Amid Geopolitical Tensions, EUR/USD Sees Gains

The US Dollar (USD) has retreated from its strong advance on Friday despite worsening geopolitical tensions. Market participants seem to have already factored in the hawkish comments made by Chair Warsh at Jackson Hole.

The US Dollar Index (DXY) began the week with a loss, dropping below 99.50 due to mixed performance of US Treasury yields and ongoing geopolitical concerns. The next significant event will be the release of the ISM Manufacturing PMI, followed by the JOLTs Job Openings and the final S&P Global Manufacturing PMI.

The EUR/USD pair has regained some ground, breaking above 1.1600 on the back of fresh selling interest in the US Dollar. The key focus will be on the preliminary Inflation Rate in the Euroland and Retail Sales in Germany.