Early on Monday, the US dollar is trading mostly unchanged against its major peers as markets await updates from the Fed’s Jackson Hole symposium on how the monetary policy of the US could develop in the near future. At the time of writing, the US dollar index DXY is trading around 93.24.

Later this week, Fed chairman Jerome Powell is expected to shed light on the monetary policy at the annual event. Despite the monetary easing measures and fiscal stimulus by the government, economic recovery has been delayed further as the number of infections continue to rise, driving significant uncertainty in global financial markets.

After weakening to a two-year low over the past few sessions, the dollar recovered some strength last week over encouraging economic data releases, including an uptick in business activity and home sales. In addition, the greenback’s safe haven appeal came back into the spotlight amid rising uncertainty about economic recovery following the coronavirus pandemic.

However, analysts caution that the bullish moves in the US dollar could be temporary as the currency is unlikely to make gains as long as the downturn in the US economy continues. Meanwhile, the Fed has also signaled its intentions to remain dovish for longer time, exerting more downward pressure on the reserve currency.