FX.co ★ Dollar Edges Higher as Trump-Zelensky Talks

On Monday, the dollar index exceeded 98.1, driven by geopolitical events and anticipation surrounding the upcoming Federal Reserve symposium in Jackson Hole. At the White House, President Trump hosted Ukrainian President Volodymyr Zelensky, conveying optimism about concluding the ongoing conflict, committing to U.S. support in sustaining peace, and indicating plans to communicate with Russian President Vladimir Putin post-discussions. Despite no significant progress being made, Trump, following his Friday dialogue with Putin, expressed intentions to urge Zelensky for a swift resolution. In terms of monetary policy, there is an 84% market consensus forecasting a 25 basis point interest rate reduction by the Federal Reserve in September. However, robust producer inflation figures and retail sales have moderated expectations for a more substantial 50 basis point cut. Federal Reserve Chair Jerome Powell is anticipated to offer additional insights during the Jackson Hole symposium.