FX markets are very much in wait and see mode ahead of Fed Chair Powell’s speech at the Jackson Hole Symposium. Although, markets participants are beginning to anticipate a more cautious statement by Powell after the typically hawkish Kaplan last week suggested that the timing of the Fed’s taper could be altered in light of the rise in Covid cases. In turn, the USD has since pulled back from its multi-month highs, while the risk assets have been underpinned. Another tell that it will become harder to ignore the current Covid backdrop is that the Jackson Hole Symposium will now take place virtually.
