DXY Falls as Global Hawkish Repricing Takes Hold
The US Dollar Index (DXY) fell to 99.50 and is down by 0.26% after a session of hawkish repricing across major economies.
American forces struck Iranian launchers on Larak Island, causing oil prices to surge more than 2%, yields rose across the curve, and the pricing for a September Federal Reserve interest rate hike sits near 60% against roughly 35% before Friday's Jackson Hole keynote.
However, the DXY opened above its 200-day Exponential Moving Average (EMA) but has since traded below it.
The repricing of rates is not an American event, as borrowing costs in the euro area and Japan reached their highest levels in years, with Japanese two-year paper touching a 31-year high.
The European Central Bank meets on September 9-10 and is widely expected to raise interest rates, arriving a full week before the Federal Reserve's decision on September 16.