The U.S. dollar remained steady below a one-week high on Thursday, while Asian stock markets showed mixed results. Investors are preparing for key updates from the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, starting later today. The main focus is Fed Chair Jerome Powell’s speech on Friday, which could hint at a possible interest rate cut in September.
In Asia, Japan’s Nikkei index fell 0.6%, pulling back from its record high earlier this week. Meanwhile, South Korea’s KOSPI gained 0.9% after hitting a six-week low on Wednesday. Australia’s benchmark index rose 0.6%, reaching an all-time high. Japanese chip stocks had varied performances, with Advantest up 3% and Tokyo Electron down 2%. These mixed outcomes reflect cautious investor sentiment as markets brace for Jackson Hole.
The dollar index held steady at 98.252 after touching its highest level since August 12. The dollar traded at 147.41 yen, while the euro and sterling stayed flat at $1.1647 and $1.3458, respectively. Gold prices dipped slightly to $3,342 per ounce. Oil prices rose, supported by strong U.S. demand, with Brent crude up 0.5% to $67.19 a barrel and U.S. WTI crude up 0.6% to $63.10.
Investors are closely watching the Federal Reserve amid rising tensions with the U.S. administration. President Trump’s push for more control over the Fed has caused concern. His nomination of Stephen Miran as a Fed governor could sway future rate decisions. Traders estimate an 80% chance of a quarter-point rate cut on September 17, down from 84% earlier. As markets brace for Jackson Hole, uncertainty around Powell’s speech keeps investors cautious. The symposium’s focus on labor markets may provide clues about the Fed’s next steps.
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