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18.08.202502:05:24UTC+00Dollar Holds Steady Ahead of Key Events

On Monday, the dollar index steadied around 97.8 as investors anticipated a significant meeting in Washington between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy. This meeting comes ahead of the much-anticipated Federal Reserve's symposium in Jackson Hole later this week. President Trump indicated he would urge President Zelenskiy to expedite a resolution following his recent discussions with Russian President Vladimir Putin. While no concrete ceasefire agreement was reached, President Putin consented to allow the U.S. and Europe to offer Ukraine substantial security assurances as part of a prospective plan to end the ongoing conflict. In terms of monetary policy, the markets are forecasting an 84% probability of a 25 basis point interest rate cut by the Federal Reserve in September. However, stronger-than-expected data on producer inflation and retail sales have dampened the prospects of a larger 50 basis point reduction. Federal Reserve Chair Jerome Powell is anticipated to offer further insight at the Jackson Hole gathering.

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