USD steady as markets await Powell's Jackson Hole guidance on rates

Global forex markets remained in consolidation mode as traders focused on Fed Chair Jerome Powell's upcoming Jackson Hole symposium speech scheduled for Friday morning. The dollar index held relatively unchanged, with major pairs trading in tight ranges amid the pre-event caution. Market participants are particularly interested in Powell's assessment of recent economic data and any hints regarding the Fed's rate path for the remainder of 2025. The Jackson Hole symposium has historically been a venue for significant policy signals, with previous speeches triggering substantial market moves. Current fed funds futures suggest markets are pricing in a 65% probability of a rate cut by year-end. Any deviation from dovish expectations could trigger sharp dollar movements, particularly against rate-sensitive pairs like USD/JPY and EUR/USD. Traders should prepare for potential volatility spikes following the speech.