The dollar index steadied around 104 on Tuesday, as investors cautiously awaited a slew of US economic reports this week that could influence the interest rate outlook. Markets look ahead to job openings figures on Tuesday, as well as the PCE price index, personal income and spending data, ISM Manufacturing PMI, the second estimate of Q2 GDP growth and the monthly jobs report later in the week. Federal Reserve Chair Jerome Powell also said in his Jackson Hole speech on Friday that they are “prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level” until inflation moves sustainably lower towards the objective as it remains “too high.” However, he clarified that they would “proceed carefully” with additional hikes as he noted both progress made on easing price pressures as well as risks from the surprising strength of the US economy.
