Take care! Powell's speech will cause chaos

<p>&nbsp;The US dollar traded steady around two-month highs, with markets now more cautious ahead of Federal Reserve (Fed) Chairman Jerome Powell's speech tonight.</p><p><br /></p><p>At the time of writing, the dollar index which measures the greenback's strength was trading at 104.14 against a basket of major currencies.</p><p><br /></p><p>The first day of the annual Jackson Hole symposium will see speeches from Jerome Powell and European Central Bank (ECB) President Christine Lagarde at the New York session.</p><p><br /></p><p>Speeches from the two central bank chiefs are expected to trigger volatility in the market tonight.</p><p><br /></p><p>The euro continued to trade weaker ahead of Lagarde's speech which is feared to signal a halt to her interest rate hikes, especially after being shown by recent dismal PMI data.</p><p><br /></p><p><br /></p><p>The currency slipped further to fresh two-month lows against the greenback to trade at 1.0790 in the European session.</p><p><br /></p><p>Meanwhile, the pound currency traded down to its weakest level since June at around 1.2560 against the US dollar, also pressured by the expectation that the Bank of England (BOE) will not continue its tightening.</p><p><br /></p><p>In addition, the yen continues to trade weakly at around 146.00, a nine-month low against the US dollar.</p><p><br /></p><p>Bank of Japan (BOJ) Governor Kazuo Ueda's speech in Jackson Hole on Saturday will be the focus of investors for clues on the central bank's policy.</p><p><br /></p><p>On the other hand, the Australian, New Zealand and Canadian dollars remained traded at around the lowest level against the US dollar.</p>