USD Gains as Markets Await Powell's Jackson Hole Speech

The US Dollar Index has rebounded from 98.00, gaining 0.5% ahead of Fed Chair Powell's highly anticipated Jackson Hole speech. Markets are positioning cautiously as Powell is expected to maintain a non-committal stance on future rate cuts, with traders pricing in only 11 basis points of easing by year-end. Meanwhile, Japanese inflation data showed persistent price pressures, with core CPI remaining above the Bank of Japan's 2% target for the 16th consecutive month. The diverging monetary policy outlooks between major central banks are creating volatility across currency pairs. Technical indicators suggest the dollar's recovery could extend if Powell strikes a hawkish tone, with immediate resistance at 99.20 on the DXY. Traders should monitor corporate earnings releases alongside central bank communications for additional market direction.