Hawkish Bets on Fed and BoJ as Markets Gear Up for Key Events

The market took a hawkish turn after Fed Chair Warsh's speech at Jackson Hole, increasing the odds of not just one but two interest rate hikes before year-end.

The Bank of Japan is set to meet amidst disappointing Q2 growth, with consumption contracting by 0.1% despite real wage gains and capex shrinking for the third quarter in four.

The British Pound rose for the first time in back-to-back months this year in August, reaching $1.3675, its highest in six months, while the Australian dollar has appreciated nearly 7.3% against the US dollar through late August.