US Dollar Index extends upside above 97.50 as traders brace for Fedspeak

• US Dollar Index trades in positive territory around 97.80 in Monday's Asian session.
• Fed lowered its benchmark interest rate by 25 bps at its September meeting. 
• The speeches from Fed officials will be closely watched later on Monday. 

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a stronger note near 97.80 during the Asian trading hours on Monday. The DXY extends the rally as traders brace for a slew of speeches from Federal Reserve (Fed) officials throughout the week that could provide further clues on the US rate outlook. 

The Fed cut its first interest rate cut of the year, lowering the Federal Funds Rate by 25 basis points (bps) to the new target range of 4.00% to 4.25%. Fed Chair Jerome Powell stated during the press conference that the decision was a "risk management cut" intended to address a weakening labor market while inflation remains somewhat elevated. The DXY received some support on less-than-expected dovish remarks from the Fed officials.

Fed Governor Stephen Miran, who voted against the quarter-percentage-point reduction in favor of a steeper 50 bps rate cut at September's policy meeting, said he made his decision independently and was not pressured on how to vote. Miran promised to give a detailed argument for his views in a speech later on Monday. 

Traders will keep an eye on the Fedspeak later in the day, as it could move the currency markets. Renewed concerns over the Fed's independence might cap the upside for the US Dollar. 

"The one that I think would be most interesting for markets is the speech from Stephen Miran, because markets would want to get a gauge about what he thinks about independence of the Fed and what influence the President might have and the like," said Joseph Capurso, head of FX, international and geoeconomics at Commonwealth Bank of Australia.