Analysis: Powell is unlikely to give a clear signal

ChainCatcher news, Commonwealth Bank economist Capso said that the speech delivered by Federal Reserve Chairman Powell at the Jackson Hole annual symposium will become the next catalyst for the dollar's movement. However, do not expect Powell to send clear signals in either direction.

Capso stated that he may keep his options open and wait for more data. But if Powell indicates a willingness to cut rates, the market is expected to price in a September rate cut more fully, and the dollar will decline moderately. He mentioned that the probability of a rate cut in September is currently around 70%, which sets a high threshold for Powell to deviate from market expectations. (Jin Shi)