United States Dollar Index steadies above 99.00 before Fed Chair Warsh speech

The US Dollar Index (DXY) maintained support above 99.00 on Friday, as investors maintained a cautious outlook ahead of Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium. The Greenback's modest gains came after a slight decline the previous day and were buoyed by stronger-than-expected US inflation data, which has sparked expectations of another interest rate hike before the year's end.

While traders anticipate the central bank will maintain rates at its September meeting, with a 65% probability, the DXY has been viewed as a countertrend, with analysts noting that the index is still in a deep downtrend. Fed Chair, Kevin Warsh's speech is expected to provide clarity on the future direction of US interest rates, adding to the focus on whether the index will retest the mid-99 area.