US Dollar Rises Modestly After Hawkish Tone at Jackson Hole

The US Dollar Index (DXY) has seen modest gains since Fed Chair Warsh's Jackson Hole speech, rising around 0.3% from Friday's open. This follows a more significant advance of 0.5% on the day of the speech itself.

Warsh emphasized that inflation not falling at sufficient speed shifts risks toward a hike, but this hawkish tone is tempered by the FOMC's recent caution and upcoming NFP and CPI data.

MUFG's Derek Halpenny notes that every G10 central bank is meeting this month, with some set to hike rates, others potentially surprising with hikes of their own. Elevated energy prices and a hawkish tone from most central bankers are curtailing appetite for the US Dollar at present.