Societe Generale Research discusses its expectations for the USD outlook for the coming month.
"This week sees the final stage of the US exit from Kabul, OPEC+ meets, while Louisiana will clean up after Ida, and US ISM and labour market data will be published. Covid strains are still dampening economic sentiment around the world and supply chain disruptions continue. In Europe, sentiment data have deteriorated a little, and inflation data are the main event ahead," SocGen notes.
"All this leaves the dollar meandering, with the Fed Chairman having taken the wind out of its sails, but no other major currency really offering up much of an alternative. A combination of taper-expectations and short-covering dragged the dollar index higher but it has now run out of steam; until new drivers emerge, a break of either 94 or 91 seems unlikely and September may even see a narrow 92-93 persist for much of the time," SocGen adds.