US Dollar Index Tipped to Consolidate Near Recent Lows Amid Policy Risks

The US dollar began the week on a soft note as markets await policy signals from the White House.

ING analysts Chris Turner, Francesco Pesole, and Frantisek Taborsky point out that sanctions on Iran, renewed trade tensions between the US and Canada, and possible fiscal consolidation are in focus this week.

They also highlight the upcoming release of July's US core PCE inflation data and a keynote speech by Kevin Warsh at the Jackson Hole symposium.

The analysts see scope for further dollar long-squeezing and DXY consolidation within a defined range, specifically near recent lows in the 98.50-99.00 range.