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Dollar slips near multi-month lows ahead of Warsh and US inflation
DXY is holding near 98.8 after trading down to the 98.5s, with US longer-dated Treasury buybacks weighing on yields and the greenback.
The US Dollar Index, DXY, ended the week near even with Thursday, around 98.8, after dipping to the 98.5s before recovering later in the session, FXStreet reported. The index is near its lowest level since May, with the article pointing to Treasury market plumbing rather than a sudden shift in macro data.
FXStreet linked the dollar softness to a US Treasury plan to at least double buybacks of longer-dated debt, which pulled yields lower and reduced support for the Greenback. The move came alongside Friday flash PMI surveys showing US activity still accelerating.
Looking ahead, FXStreet said the coming week is back-loaded for the dollar, with Wednesday bringing the July Personal Consumption Expenditures, the Fed's preferred inflation gauge, and Friday featuring a double-header. That includes new Fed Chair Kevin Warsh's first Jackson Hole keynote and the Bureau of Labor Statistics' preliminary annual benchmark revision to Nonfarm Payrolls, with the piece warning that a dovish tone from Warsh or a heavy downward jobs revision could deepen the dollar's decline.
Beyond the US, FXStreet also cited Eurozone and Japan and Australia events that could influence broader currency moves, including Germany's IFO and Eurozone GDP, plus Tokyo CPI data tied to Bank of Japan policy debate and Australia's Reserve Bank of Australia calendar items. Meanwhile, the article noted gold surged to a three-month peak above $4,600 and the Australian dollar rose to a multi-month high as Middle East tensions simmered.
Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%