Currencies tread with caution ahead of Powell's speech

Currencies tread with caution ahead of Powell's speech

Source: EODHD - https://www.investing.com/news/economy-news/currencies-tread-with-caution-ahead-of-powells-speech-4205885
Published: Aug 21, 2025 9:41 PM

By Ankur Banerjee SINGAPORE (Reuters) -The U.S. dollar was steady on Friday, poised for a strong weekly performance as investors gear up for an eagerly anticipated speech from the Federal Reserve Chair Jerome Powell that could shape the near-term path for interest rates. An unexpectedly weak July jobs report coupled with big downward revisions to hiring in May and June bolstered hopes of an imminent reduction in borrowing costs, with traders even pricing in a jumbo rate cut for the next meeting in September. But since then cautious comments from other policymakers and economic data flashing inflationary risks have tempered those expectations. Still, traders are pricing in a 75% chance of a 2...

Market context: This update is relevant to AUD traders, with AUDUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.