US Dollar (DXY) Undecided After Chair Powell’s Speech Gives Little Away

US Dollar (DXY) Price, Chart, and Analysis

• Price stability remains key for the Fed.
• US dollar nudges lower.

The conclusion of Fed chair Powell’s Jackson Hole keynote speech suggests that the central bank will ‘proceed carefully’ before making any decisions on future monetary policy decisions.

‘At upcoming meetings, we will assess our progress based on the totality of the data and the evolving outlook and risks. Based on this assessment, we will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data. Restoring price stability is essential to achieving both sides of our dual mandate. We will need price stability to achieve a sustained period of strong labor market conditions that benefit all. We will keep at it until the job is done.’

Chair Powell’s Jackson Hole Speech

With something in the speech for both hawks and doves, the US dollar is stuck in the middle of a range. US equity indices are positive but have given back some of their earlier gains, while the rate-sensitive US 2-year is a couple of basis points higher at 5.06%.

US Dollar (DXY) Daily Price Chart – August 25, 2023

Next week the US economic calendar is brimming with high-impact data releases with the latest look at inflation and the August Non-Farm Payroll report the two standouts. The second look at US Q2 economic growth will also be interesting after the initial version showed the economy expanding by a stronger-than-expected 2.4%.

For all market-moving data releases and economic events see the real-time DailyFX calendar

Chart via TradingView

What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.