Euro Holds Firm Ahead of Jackson Hole as Investors Await US Policy Clues

The Euro has maintained its modest bid above $1.1650 as investors await the outcome of the Jackson Hole Economic Symposium, which could provide clues about the US economy and monetary policy.

According to ECB Executive Board member Isabel Schnabel, borrowing costs will need to rise further due to the strong Eurozone economy and inflation risks posed by the conflict in the Middle East. Markets are pricing in a nearly 96% chance of an interest rate hike to 2.50% at the September policy meeting.

Traders will closely watch Fed Chair Kevin Warsh's speech on Friday, with some strategists warning that a dovish tone could lead markets to interpret the message as a signal for further monetary easing.