European session review: USD little changed ahead of Fed’s summit

USD traded mixed and little changed against other major currencies in the European session on Thursday as investors remained cautious ahead of the Federal Reserve’s crucial event, which might shed some light on the U.S. central bank's plans for its policy.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged up 0.03% to 92.85.

The highly anticipated Fed’s Jackson Hole symposium is set to start later today, and will be held virtually due to coronavirus risks. The symposium’s theme this year is "Macroeconomic Policy in an Uneven Economy”. The Fed’s Chairman Jerome Powell is scheduled to address the event on Friday. Markets will be listening closely, hoping to get clues on when the Fed might look to begin tapering its asset purchases.

Earlier this month, several Fed’s officials have expressed views that it would be appropriate for the U.S. central bank to start tapering stimulus in the fourth quarter, but some others have stressed that more evidence of a recovery is needed, particularly in the labour market, before such action is taken.

Market participants also awaited the releases of the U.S. Q2 GDP data (second estimate) and weekly jobless claims, due at 12:30 GMT, which could set the tone for Powell's Jackson Hole speech.