EUR/USD slipped to 1.1595 in Friday’s Asian session, pressured by a stronger dollar, while investors awaited Germany’s Q2 GDP and Powell’s speech for guidance. Rate futures now price a 75% chance of a 25 bps cut, down from 92% last week. EUR/USD is testing resistance at 1.1645, with support at 1.1560.

Gold consolidated within a narrow range as markets awaited Powell’s remarks. Despite weak labor data, Fed officials offered little support for near-term easing, though futures still assign a 75% probability of a September cut. Renewed geopolitical tensions also weighed, with Russia launching its largest attack in over a month and accusing Kyiv of stalling talks. 

The dollar extended gains against the yen, with USD/JPY climbing to 147.65 after dipping near 146.90 earlier in the week. The pair remains volatile within a 146.70–148.00 range as traders await Japan’s July CPI for clues ahead of the BoJ meeting.

Looking ahead, the Jackson Hole symposium is worth keeping an eye on, where Fed Chair Jerome Powell’s speech is expected to shape rate expectations.

Take a look at today's market analysis for more details!