Markets position cautiously ahead of Powell's Jackson Hole speech

Global forex markets entered a holding pattern as traders awaited Fed Chair Powell's highly anticipated Jackson Hole symposium speech. EUR/USD consolidated near 1.0930, while GBP/USD traded sideways around 1.3150, reflecting the market's cautious positioning. Asian session futures showed modest rebounds, with S&P 500 futures up 0.3% and Nasdaq futures gaining 0.4%. Currency volatility remained subdued, with the VIX trading at 15.2, below its 20-day average. Market consensus expects Powell to maintain a balanced tone while acknowledging recent economic developments. Analysts suggest any hints toward policy normalization could trigger significant currency movements, particularly in USD/JPY and commodity currencies. Technical setups show major pairs trading within tight ranges, with EUR/USD between 1.0900-1.0950 resistance and support zones. The speech timing coincides with thin summer liquidity conditions, potentially amplifying any directional moves.