On August 20, St. Louis Fed President Musa­l­em issued a slightly hawkish statement, saying that the probability of inflation returning to the 2% target under the current interest rate level is low, and that further rate hikes could be avoided to prevent a more aggressive tightening in the future. The remark supported the US dollar, putting pressure on non-US currencies, and also drove US Treasury yields to rebound from the sharp drop the previous day. The market is reassessing the interest-rate path and is watching the preliminary global PMI reading on Friday. $USD is for informational purposes only and does not constitute investment advice.