Dollar Under Pressure as Trump's Economic Threats Intensify

The US dollar remains under pressure due to shifting fault lines in its balance of risks. President Trump's recent threats against Iran have taken on an economic tone, with the president announcing plans for an 'economic D-Day' and warning trading partners of consequences if they support Iran.

The exact nature of these measures is unclear, but it may limit the dollar's safe-haven appeal. Meanwhile, concerns over US debt and inflation are resurfacing, potentially weighing on the dollar in the long term.

Short-term catalysts include upcoming PMIs and Kevin Warsh's communication at the Jackson Hole symposium. The 98 level remains key support for the DXY index, with a modest downside bias expected ahead of the symposium.