US FX WRAP: Dollar contained vs. G10 peers as Warsh awaits

The Dollar Index was more-or-less flat on Thursday, with mixed performance against G10 FX peers. For the Greenback, headlines came via Fed speak at Jackson Hole, albeit little moved the dial, and US data in the form of jobless claims, which ticked lower and beneath expected. Meanwhile, the advance goods trade deficit widened, lead by a sharp rise in capital goods imports given high demand for AI hardware. Heading into Friday, Fed Chair Warsh's address at Jackson Hole symposium is the key highlight. On the geopolitical footing, the main update was reports that the Trump administration has repeatedly told mediators it has no interest in going back to the terms of the MoU it reached with Iran in June.

G10 FX performance vs. the Dollar was either side of the unchanged mark, in pretty light currency specific newsflow. The EUR was unmoved to ECB minutes which were a non event; within them, it was argued that a rate increase would not address the underlying cause of the rise in inflation. The Yen conformed to the general flat trend with not many surprises from BoJ Deputy Governor Himino who’s tone was consistent with pricing of September’s likely 25bps hike, noting in both of his speeches the BoJ needed to “pay more attention to upside inflation risks than before”.