European session review: USD steadies ahead of U.S. July PCE inflation data, Fed Chair Powell’s speech

USD traded mixed and little changed against other major currencies in the European session on Friday, as investors awaited the Federal Reserve Chairman Jerome Powell’s address to the Jackson Hole economic symposium later today, which might shed some light on the U.S. central bank's plans for its stimulus.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged down 0.03% to 93.03.

The Fed’s Chairman Jerome Powell will deliver his virtual speech to the participants of the symposium at 14:00 GMT. Markets will be listening closely, hoping to get clues on when the Fed might look to begin tapering its asset purchases.

Atlanta Fed president Raphael Bostic stated today that it would be “reasonable” for the U.S. central bank to start the bond-buying taper in October if job gain in August matches those in June and July. Several other Fed’s officials also have expressed similar views earlier this month.

Market participants also looked for the release of the U.S. core  PCE inflation reading - the Fed’s preferred inflation gauge (due at 12:30 GMT), - which could determine the tone of Powell's Jackson Hole speech.