Before Powell's important speech, the US dollar was boosted by strong economic data.

Investors digested stronger-than-expected US economic data and the dollar strengthened as Federal Reserve Chairman Powell spoke later at the Jackson Hole symposium. The US PMI released on Thursday exceeded expectations, boosting the dollar. Analysts at Deutsche Bank said in a report that these data prompted investors to lower their expectations of a Fed rate cut. They said this left investors in a "nervous state" before Powell's speech. Analysts pointed out that "investors will closely watch whether Powell will focus more on the weak employment data rather than the relatively stable labor market slack indicators and still robust economic activity and inflation data."