Danske Research discusses its expectations for tomorrow's Fed Powell's Speech.
"With little actual news, EUR/USD remains largely unchanged and follows mostly risk sentiment. Nonetheless, we note the German IFO index posted a decline in line with many other activity indicators. This confirms a peak in the pace of expansion for the manufacturing cycle, at least for now. We continue to expect further evidence of such peak amid a more hawkish Fed will contribute to a stronger dollar over the coming year," Danske notes.
"Short-term, markets will focus on Powell speaking at Jackson Hole tomorrow, although we do not expect him to make any major changes to policy signals. Also EUR/GBP was more or less unchanged still trading below 0.8," Danske adds.