Dollar Firms Ahead of Jackson Hole Amid US-Iran Ceasefire Reports

The US Dollar firmed on Wednesday ahead of the Jackson Hole Symposium, where Fed Chair Kevin Warsh will deliver the keynote address. The US Dollar Index (DXY) climbed toward 99.20 as traders squared positions in anticipation of the event. Risk sentiment improved on reports of a US-Iran ceasefire that would reopen the Strait of Hormuz, sapping demand for Gold and boosting the Greenback.

Despite this trend, the Australian Dollar was an exception among the majors, clinging to gains after hotter-than-expected inflation data earlier in the week. The EUR/USD pair gave back ground, drifting toward the mid-1.1600s as caution ahead of the European Central Bank (ECB) accounts weighed on the Euro.

The Asian session opens with Australia's second-quarter Private Capital Expenditure release, which could sway the Aussie following its inflation-driven gains. The main event in Europe is the ECB Monetary Policy Meeting Accounts, where traders will look for guidance on interest rates. Germany's GfK Consumer Confidence Survey and Initial Jobless Claims in the US are also due today.