US Dollar: Dovish Fed repricing risk grows – BBH

The US Dollar (USD) is trading near a one-week high as major currency pairs test significant technical levels. Brown Brothers Harriman’s (BBH) analyst Elias Haddad points out that divergent Federal Reserve (Fed) statements from Jackson Hole are causing USD exposure to a potential dovish reevaluation of Fed rate outlooks. US stocks and bond yields are mostly firming, while Fed funds futures indicate a 35% probability of a 25 basis point rate hike to 3.75-4.00% during the September 16 meeting, with a total tightening of almost 50 basis points over the next year.

The Labor Department is set to release its preliminary annual payroll benchmark revision today, which is expected to increase by 185,000 jobs, suggesting a slight slowdown in hiring growth. Gold prices continue to rise for the second consecutive day, with the XAU/USD pair maintaining a bullish bias as it trades above key moving averages.

Meanwhile, Hyperliquid (HYPE) shares are down 2% following a record high in its previous session, as the company raised nearly $650 million in an equity deal to boost its HYPE holding to 29.3 million tokens.