This is it! USD Reaction To Powell's Speech In Jackson Hole

<p>&nbsp;As said, Federal Reserve (Fed) Chairman Jerome Powell's speech at the annual Jackson Hole symposium has sparked volatility in the market.</p><p><br /></p><p>The USD, in particular, has shown a fairly significant jump to a two-month high following Powell's slightly hawkish remarks.</p><p><br /></p><p>Powell pointed out that the Federal Reserve may need to keep raising interest rates to lower inflation, which is still too high.</p><p><br /></p><p>Although the statement is not as hawkish as he delivered a year ago in Jackson Hole, but investors see another increase in interest rates towards the end of the year.</p><p><br /></p><p>As a result, the US dollar surged higher on Friday before paring back some of the gains to trade around 104.05 in the Asian session today.</p><p><br /></p><p><br /></p><p>Investors' focus next shifts to the release of key economic data this week, particularly the US NFP jobs report on Friday.</p><p><br /></p><p>Looking at the movements of other major currencies, the euro and pound were flat at two-month lows, trading at around 1.0807 and 1.2560 against the greenback respectively.</p><p><br /></p><p>European Central Bank (ECB) President Christine Lagarde's speech in Jackson Hole was overshadowed by Powell's statement, where Lagarde was seen as wanting to maintain the current policy stance.</p><p><br /></p><p>Meanwhile, the Aussie and New Zealand dollars continued to hover around the same price with each trading at their weakest levels since November last year.</p><p><br /></p><p>In addition, the Canadian dollar traded weakly at a three-month low against the greenback amid steady crude oil trading.</p>