Dollar Steadies Ahead of Trump-Zelenskiy Talks and Fed Symposium
The U.S. dollar steadied on Monday as markets awaited a key meeting between President Donald Trump and Ukrainian President Volodymyr Zelenskiy. Investors are also watching the upcoming Federal Reserve’s Jackson Hole symposium for policy guidance.
Dollar Holds After Last Week’s Decline
Currency movements were muted in Asia trading. The dollar paused its recent slide as traders scaled back expectations of a large Federal Reserve rate cut in September.
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The euro was steady at $1.1704.
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Sterling gained 0.1% to $1.3563.
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Against a basket of currencies, the dollar held at 97.85 after losing 0.4% last week.
Markets now price in an 84% chance of a 25-basis-point cut next month, down from 98% a week earlier. Stronger U.S. wholesale prices and solid July retail sales reduced expectations of a larger 50-point move.
Bill Adams, chief economist at Comerica Bank, said the U.S. economy “looks to be in okay shape in the third quarter” and expects the Fed to cut rates either in September or later this year.
Spotlight on Trump-Zelenskiy Meeting
The day’s main political event is the Trump-Zelenskiy meeting in Washington. European leaders may join as the U.S. presses Ukraine to agree to a quick peace deal.
The talks follow Trump’s Alaska summit with Russian President Vladimir Putin, where he signaled preference for a peace settlement over a ceasefire, aligning more closely with Moscow’s stance.
Jackson Hole in Focus for Fed Policy
Investors are also focused on the Jackson Hole symposium on August 21–23. Fed Chair Jerome Powell will deliver a speech on the economic outlook and monetary policy.
Joseph Capurso of Commonwealth Bank of Australia warned that if Powell strikes a balanced or cautious tone, markets may perceive him as hawkish, since traders already expect a September cut.
Dollar and Other Currencies
The dollar rose 0.14% to 147.37 against the yen, after dropping 0.4% last week. Japan dismissed U.S. Treasury Secretary Scott Bessent’s criticism that the Bank of Japan was “behind the curve” on policy.
The Australian dollar rose 0.17% to $0.6519, while the New Zealand dollar gained 0.25% to $0.5940, recovering from last week’s decline.
Bitcoin and Crypto Markets Pull Back
In cryptocurrencies, bitcoin slipped 1.7% to $115,700.39 after a record high. Ether dropped 3% to $4,334.81, though it remains near a four-year peak.
Leon Yee of Duane Morris & Selvam said institutional adoption of crypto ETFs and strong ETH buying by digital asset treasuries continue to boost confidence. He added that with a Fed rate cut expected this year, “the party will continue” for crypto and equities markets.
