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Powell's Jackson Hole speech may become a catalyst for the dollar's trend, with interest rate cut expectations influencing the market.
On August 22, Australian Federal Bank economist Capso stated that Fed Chairman Powell's speech at the Jackson Hole annual seminar will be the next catalyst for the USD trend. However, do not expect Powell to issue a clear signal in any direction.
Kapso stated that he might hold onto his options and wait for more data. However, if Powell indicates a willingness to cut interest rates, the market is expected to price in the September rate cut more fully, and the dollar will decline moderately.
He said that the probability of an interest rate cut in September is currently around 70%, which sets a high bar for Powell to deviate from market expectations.