The euro has rallied versus the dollar following Fed Chairperson Powell’s opening speech at the central bank’s symposium in Jackson Hole today. A number of FOMC members had in the past 48 hours played down the need for further Fed rate cuts but Powell was seemingly dovish enough for markets to believe that a further 25bp cut will be forthcoming at the Fed’s September policy meeting. The EUR/USD cross, which had been languishing near 1.105 has jumped to 1.113 but to be clear this is still a modest move with the Dollar proving resilient near elevated levels.
