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Dollar holds steady as markets shift focus to Jackson Hole speech

The dollar index was near flat at 99.18, even as euro weakened slightly and the U.S. goods trade deficit widened to $118.8 billion in July.

Reported · Written up by our desk · Major Pairs

The U.S. dollar was roughly flat on Thursday after a round of economic data, as traders turned their attention to a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium, according to Reuters.

Investors are watching for signals on how policymakers plan to operate in a higher Treasury yield environment, where bond market moves could effectively provide some of the tightening. Warsh is scheduled to speak Friday, while the dollar has rebounded 0.35% this week after falling 0.83% in the prior week, following remarks from U.S. Treasury Secretary Scott Bessent about doubling quarterly repurchases of longer-dated bonds.

The dollar index inched up 0.05% to 99.18, while the euro slipped 0.03% to $1.1646. Weekly initial jobless claims fell for a second straight week to 203,000, below the 208,000 estimate, but the greenback showed little reaction to the labor data.

Other releases included a Census Bureau report showing the U.S. goods trade deficit widened to $118.8 billion in July from $101.4 billion in June, the largest goods trade gap since March 2025. Separately, while inflation data had earlier supported expectations that rates could stay restrictive, CME FedWatch showed expectations for a September move of at least 25 basis points slipped to 35.9% on Thursday.

Latest closeDollar index 99.11 ▲0.2%

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