The dollar drifts below a one-week high on Thursday as investors awaited key signals from the U.S. Federal Reserve. Global markets showed a mixed trend, with traders closely watching Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium.
The annual event gathers central bankers worldwide. Powell’s remarks on Friday are expected to give clearer guidance on possible interest rate cuts in September. Markets are divided, with many betting on easing, while recent inflation data has clouded the outlook.
Equity markets remained steady despite some pullbacks. Australia’s ASX gained 0.9% to hit a record, while Japan’s Nikkei slipped 0.6% after touching an all-time high earlier this week. South Korea’s KOSPI rebounded 0.7% after recent losses. Chinese blue chips rose 0.7%, though Hong Kong’s Hang Seng dipped 0.1%.
In the U.S., Nasdaq futures edged 0.1% higher following overnight losses. S&P 500 futures were flat. Analysts noted that earnings growth and a resilient economy continue to support equity sentiment.
The dollar index remained stable at 98.281 after climbing to its highest since August 12. Treasury yields also steadied, with the two-year yield at 3.75% and the 10-year at 4.29%. The yen traded near 147.38 per dollar, while the euro and sterling held firm.
Oil prices advanced, supported by falling U.S. inventories. Brent crude rose 0.5% to $67.16 per barrel, while WTI increased to $63.05. Gold eased 0.3% to $3,338 per ounce.
As the dollar drifts in anticipation of Powell’s speech, markets remain cautious. Traders are balancing hopes of a September rate cut against concerns over persistent inflation. The outcome of the Fed’s next moves will likely shape currency and equity trends in the weeks ahead.
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