The Market is going wild from Powell's speech, interpreted as largely dovish!
In case you missed it, you can access the text and a review of his live speech at the Jackson Hole Economic Symposium on this page:
Jerome Powell just concluded his nuch-anticipated speech at the Jackson Hole economic conference and the reactions are strong.
Holding a very nuanced approach, as we're used to from Powell, Markets still interpreted some of his wording as a slightly dovish opening.
These lines on employment are a good example:
"Overall, while the labor market appears to be in balance, it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers. This unusual situation suggests that downside risks to employment are rising. And if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment."
The more balanced approach is a shift from his July FOMC speech where he only held a few mentions of downside risks to employment.
An amazing recap of Powell's speech and the changes to his wording can be found here if you look for more details.
Let's dive right in a few key charts pointing to the strong reactions following the speech.
Market reactions – US Dollar selling hard allowing everything else to jump higher
Dollar Index 4H Chart – The US Dollar gets slammed
US Dollar 4H Chart, August 22, 2025 – Source: TradingView
Crypto Market goes to the moon
Crypto Market overview, August 22, 2025 – Source: Finviz
BTC recovers fast – Bitcoin 1H Chart
Bitcoin 1H Chart, August 22, 2025 – Source: TradingView
Ethereum goes to retest its recent highs up 11%! – ETH 4H Chart
Ethereum 4H Chart, August 22, 2025 – Source: TradingView
Gold sees some relief – Currently up 1%
Gold 4H Chart, August 22, 2025 – Source: TradingView
The Dow Jones rallies to new All-time Highs
Dow Jones 4H Chart, August 22, 2025 – Source: TradingView
FX pairs go wild from the US Dollar selloff
Forex Market overview, August 22, 2025 – Source: Finviz
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