Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium signaled a major shift in U.S. monetary policy, with the Fed now placing equal weight on labour market health alongside its traditional 2% inflation target. This marks a clear pivot toward supporting employment, as jobless claims trend higher and wage growth slows, highlighting cracks in the U.S. economy.
Markets reacted swiftly to Powell’s remarks, pricing in the likelihood of a September interest rate cut. The U.S. Dollar weakened broadly, while GBP/USD rallied to 1.35 and EUR/USD advanced to 1.17—one of the most decisive moves in recent weeks. For traders following live forex signals or even free forex signals, these developments provide strong entry and exit opportunities, especially for those monitoring currency trading closely.
This week’s data releases will be critical in shaping expectations: U.S. durable goods orders, consumer confidence, mortgage applications, GDP, and Core PCE inflation will all provide insights into the Fed’s path. In Europe, weaker sentiment data and rising German unemployment could weigh on the Euro, though short-term momentum remains positive. Traders making use of tools such as a lot size calculator or tracking mt5 profits may find these reports essential for fine-tuning their positions.
Overall, Powell’s pivot has shifted the market narrative. With the Dollar under pressure, Sterling and the Euro are benefitting in the near term, but the true test will come in the autumn when the Fed must deliver on its policy signals. In the meantime, strategies like copy trading, regular trade review, and diversification through crypto trading alongside forex may help traders maximize opportunities in this volatile environment.
