Warsh Speech Dominates Economic Calendar as Markets Await Policy Direction

The economic calendar is packed with key releases from major economies, but all eyes are on Fed Chair Kevin Warsh's speech at the Jackson Hole central banking symposium. This event has traditionally served as an opportunity for a new Fed Chair to outline their agenda and set policy direction.

With expectations running high for specifics from Warsh, his communication style will be under scrutiny. A lack of concrete guidance or a repetition of loose language seen at the last FOMC meeting could weigh on the US dollar, but Wall Street might welcome a dovish-leaning Warsh.

The Tokyo region's core CPI inflation accelerated to 1.8% y/y in August, supporting market expectations for further interest rate hikes by the Bank of Japan (BoJ). Meanwhile, July's unemployment rate unexpectedly fell to 2.4%, contrary to forecasts.