Before Federal Reserve Chairman Powell is set to deliver an important speech at the Jackson Hole annual meeting, financial markets are closely monitoring hints of policy direction. The latest U.S. PMI data was unexpectedly strong, far exceeding market expectations, which significantly strengthened the dollar and led investors to reassess the future path of interest rates.

Deutsche Bank's analysis team noted that this series of data performances is changing market expectations regarding the timing and magnitude of interest rate cuts. Many traders have reduced their bets on a near-term easing of policy by the Federal Reserve, leading to a more cautious and even somewhat tense sentiment. At this moment, everyone is waiting for Powell's speech, trying to find policy clues within it.

Investors are particularly concerned about whether Powell will respond more to the recent slightly weak employment data or continue to emphasize resilience in inflation and robust economic growth. How he weighs the slack in the labor market against still high inflationary pressures will be key to determining the market's next move.

On the eve of this important juncture, the market seems to be holding its breath; every word, every signal, could spark new waves.