United States Dollar holds gains near 99, all eyes on Jackson Hole Symposium

The US Dollar held steady near 99.00 on Thursday, supported by a steady Personal Consumption Expenditure (PCE) report for July. The US core PCE inflation was reported to match expectations at 3.3% Year-on-Year (YoY), while the headline PCE Price Index grew by 3.7% YoY, exceeding the 3.6% forecast. However, expectations for interest rate changes in September's Federal Reserve meeting have remained relatively unchanged, with a 64% probability according to the CME FedWatch tool.

The focus is shifting to the Jackson Hole Symposium, where Federal Reserve Chair Kevin Warsh is scheduled to speak on Friday. Warsh faces the challenge of balancing the Fed's independence and its price stability mandate while providing clearer guidance on the Fed's reaction function without sacrificing transparency. The US Dollar, which is the world's most heavily traded currency, is influenced primarily by monetary policy set by the Federal Reserve, which aims to achieve price stability and full employment.

Inflation data and upcoming Fed events will continue to shape the Dollar's value. Bitcoin (BTC) maintained gains above $78,000 during the trading session, while the South Korean Won strengthened against the US Dollar following the Bank of Korea's consecutive interest rate hikes.