The euro weakened towards $1.08, reaching its lowest level since June 14th, as investors anticipate key speeches from both ECB President Christine Lagarde and Federal Reserve Chief Jerome Powell on Friday at the Jackson Hole Symposium, which are expected to offer insights into the monetary policy outlook of the central banks. Currently, expectations indicate a 70% likelihood that the European Central Bank will raise its deposit rate to 4% next month, with approximately a 30% chance of the rate remaining unchanged. Simultaneously, US interest rates are poised to remain higher for an extended period, driven by substantial upside risks to inflation.
