Dollar Stalls Amid Hawkish Shift, FX Crosses Gain Attention

The US Dollar Index has entered a potential broad sideways chop near key resistance at 100.54, as the Federal Reserve's hawkish shift drove a bear flattening across the U.S. Treasury yield curve.

This hawkish shift was sparked by Fed Chair Kevin Warsh's keynote address at the Jackson Hole Economic Symposium on August 28, 2026, which effectively lifted September FOMC's 25 basis points rate hike odds to 67%.

The most potentially compelling macro risk/reward opportunities over the next multi-week horizon lie in FX crosses rather than direct USD pairs.