Dollar steady as markets brace for Powell while BOJ’s Ueda aims to stabilise yen

The U.S. dollar held steady as the market’s focus turned to Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium. We see here that USDX chart reflects the current market uncertainty as traders seek direction on the Federal Reserve’s next moves, particularly in light of cooling U.S. inflation and signs of softening in the labour market. The Moving Averages (MAs) on the chart (5, 10, 30) are showing mixed signals, with the price currently trading slightly below the shorter-term MAs, indicating some bearish momentum. The MACD indicator adds to the cautious outlook, with the MACD line crossing below the signal line and the histogram showing declining bullish momentum. This suggests that traders are still uncertain about the dollar’s direction as they await more concrete signals from the Fed regarding potential interest rate cuts.

Read more to find out how will dollar and yen trend.