Forex
US Dollar Index Stalls Amid Hawkish Fed Shift
The US Dollar Index has stalled after Federal Reserve Chair Kevin Warsh's keynote address at the Jackson Hole Economic Symposium on August 28, 2026.
Warsh effectively lifted September FOMC's 25 basis points rate hike odds to 67%, up from around 30% pre-speech. This hawkish shift drove a bear flattening across the US Treasury yield curve, but the DXY has entered a potential broad sideways chop near key resistance at 100.54.
The most compelling macro risk/reward opportunities over the next multi-week horizon lie in FX crosses rather than direct USD pairs.