Warsh Speech Fuels USD Hopes Amid Data-Dependent Fed Path

Commerzbank's Thu Lan Nguyen notes that Kevin Warsh's Jackson Hole speech boosted the US Dollar, signalling openness to tighter monetary policy and a possible September rate hike.

The Fed path remains highly data-dependent, with upcoming US labour market and inflation data as well as developments in the Iran war potentially altering expectations.

New inflation figures will follow next week, after this week's US labour market report.

Analysts surveyed by Bloomberg expect a stronger outcome for August payrolls, which would tend to support expectations of a rate hike and, by extension, the dollar.