Dollar Strength Falters on Data Validation Hurdle

The US dollar has strengthened after the latest Fed hike, but experts warn that a sustained breakout will require more than just hawkish rhetoric. The market has already priced in significant tightening, and data validation is now crucial to support further gains.

China's currency signal is also a key factor, with the renminbi fixings moving lower through September, opening room for appreciation into the Trump-Xi summit. However, this does not necessarily translate to a strong vote of confidence in Chinese growth.

The yen remains a timing story, as investors await clearer signals from the BoJ on policy shifts and potential portfolio reallocation. The pound's summer support structure is also vulnerable due to shifting energy and fiscal dynamics.