Key currencies remain stable as European morning trading begins.

Market Overview

• Post-Jackson Hole Reaction: The market's focus remained on the aftermath of the Jackson Hole economic symposium, with limited follow-through in trading activity.
• Dollar Movement: Following Fed Chair Powell's dovish comments, the dollar initially fell but managed to recover early in the week. Market expectations have shifted towards anticipating two rate cuts by the end of the year.

Current Trading Sentiment

• Dollar Sentiment Reset: Recent sessions saw renewed dollar selling, which has reset market sentiment towards the dollar.
• Muted Currency Action: Major currencies are experiencing minimal changes, with fluctuations around 0.1% or a maximum of 15 pips, indicating a lack of trading appetite.

Upcoming Economic Indicators

• Focus on Labor Market Data: Attention is now shifting towards the upcoming US labor market data, which is expected to influence Fed rate cut expectations.
• Anticipated Volatility: Traders are looking for potential volatility as the market approaches the London fix, although the final trading day of the week may lack significant movement.

Dollar Pair Performance

• Weekly Changes: The performance of dollar pairs this week reflects a lack of conviction in the market, with minor movements noted:
  • EUR/USD: -0.4%
  • USD/JPY: +0.1%
  • GBP/USD: -0.1%
  • USD/CHF: +0.1%
  • USD/CAD: -0.5%
  • AUD/USD: +0.7%
  • NZD/USD: +0.5%