EUR/USD consolidates during the North American session above the 1.1600 figure as traders await the Federal Reserve (Fed) Chair Jerome Powell's speech at Jackson Hole, alongside the outcome of the Ukraine-Russia conflict solution. The pair trades at around 1.1640, down 0.12% at the time of writing.

The economic docket in the United States (US) featured housing data on Tuesday, which was mainly ignored by investors. Last week's inflation figures on the consumer and producer side generated a two-way pricing for a Fed rate cut.

Initially, after the Consumer Price Index (CPI) release, some traders speculated with a 50 basis points (bps) rate cut —sparked by Bessent's interview on Fox Business— as figures mainly remained unchanged. Nevertheless, the jump in the Producer Price Index (PPI) triggered a shift in the other direction, with most markets reflecting a 25 bps rate cut, and some players expecting the central bank to hold rates.

Therefore, the Fed Chair Powell's speech on Friday could set the interest rate path towards the second half of 2025.

Aside from this, upbeat news regarding a possible de-escalation of the conflict in Eastern Europe between Ukraine and Russia could boost the Euro, on a positive outcome. Meanwhile, US President Donald Trump is pushing for a meeting between Zelenskiy and Putin, so they can solve their differences and reach peace.

A scarce economic docket in the European Union (EU) leaves traders adrift to the release of inflation figures in the EU, HCOB Flash PMIs for August, and Germany's Gross Domestic Product (GDP) figures.

Source: Fxstreet