• The US Dollar steadies on Monday after a steep 1.76% sell-off last week, the worst in more than a year.
• Fed Chairman Jerome Powell committed to a September interest-rate cut in its Jackson Hole speech. 
• The US Dollar index trades above 100.00 with US data underway this week.

The US Dollar (USD) is trading broadly flat on Monday after printing one of its worst weekly performances since June 2023. The US Dollar Index – which weighs the value of the US Dollar against a bucket of other currencies – shed 1.75% last week, with the latter part of those losses driven by US Federal Reserve (Fed) Chairman Jerome Powell’s words in Jackson Hole. Now that Powell has committed to a rate cut in September, markets could start to speculate over what this means for the Fed’s meeting in November and further down the line.  

Concerns could already start to pick up on Monday as the economic calendar features the often market-moving Durable Goods Orders numbers. Should overall US data remain resilient or even pick up pace, what would it mean for the Fed’s commitment to cut in September? Strong data could bring the scenario of a one-and-done rate cut, which would be taken by markets as a very cold shower.