Stocks climb ahead of Powells speech; yen strengthens on BOJ caution

Stocks edged higher ahead of Jerome Powell’s Jackson Hole speech, with traders speculating on possible hints about future interest rate cuts. However, a surprise is possible, recalling Powell’s hawkish speech two years ago that sharply impacted markets.

Learn how to trade stocks with Top Forex brokers

Investors anticipate a quarter-point rate cut at the Fed’s September meeting, with further cuts expected by year’s end. As long as Powell avoids a hawkish tone, markets are likely to remain steady.

The yen gained up to 0.7% against the dollar before retreating. BOJ Governor Ueda indicated the central bank might raise rates if inflation aligns with forecasts but stressed caution due to market instability.