Dollar holds firm as attention turns to the Fed’s Jackson Hole Symposium

27 August 2026

Market analysis on behalf of Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A

The US dollar remained firm on Thursday as attention turned to the Federal Reserve’s Jackson Hole Symposium for any new hints from policymakers. Fed Chair Kevin Warsh is scheduled to speak on Friday, and his comments could influence monetary policy expectations and market direction.

His remarks will follow Wednesday’s inflation figures, which showed persistent inflation despite previous softer figures. The headline Personal Consumption Expenditures Price Index remained at 3.7% year-on-year in July, above the forecast. The monthly core reading increased in line with expectations.

Overall, monetary policy expectations continue to point to an interest rate hold at the Fed’s next meeting before an increase by the end of the year. Forecasts also see an additional rate hike in 2027, which could support the dollar and bond yields.

Geopolitical developments could also impact both. Increased hopes of progress towards a settlement in the Middle East have weighed on oil prices in recent sessions, easing inflation concerns and could reduce demand for safe-haven assets. However, any setback in this process could reverse this trend.

Attention also turns to today’s weekly jobless claims, although only a sizeable deviation from forecasts would be likely to move the currency. Market participants could also stay cautious over the Treasury’s latest buy-back plans and their effect on yields.

 

Zaid Barem / ymm