Today, August 18, 2025, is a calm day for economic data, following a generally slow week. In the Asia-Pacific region, the only release is the July Business Services Index.

Economic Indicators Release

In the upcoming EU/US session, we will see the NAHB Housing Market Index released. This index shows how confident people feel about the housing market. The big event of the week is the Jackson Hole symposium. Fed Chair Powell will give a speech at 15:00 BST (09:00 EDT), and many expect him to talk about the labor market. This week feels calm before the main event. We have little major economic news until Friday, and the implied volatility (measured by the VIX index) is low, around 15. This indicates the market is waiting, which can create chances to prepare for a potential spike in volatility.

Expectations for Powell’s Speech

Everyone is focusing on Powell’s speech at the Jackson Hole symposium this Friday. These speeches often move the markets. For example, his brief but strong speech in August 2022 caused markets to drop. Any unexpected comments this year could lead to large changes in asset prices. We’ll closely watch how Powell interprets the labor market, especially since the latest data shows it is cooling down but still strong. In July, Non-Farm Payrolls added 175,000 jobs, slightly less than expected, while the unemployment rate rose to 4.1%. Powell’s views on whether this slowdown meets the Fed’s goals will be crucial for the markets. For those trading derivatives, this situation may favor long volatility strategies in the coming days. Investing in straddles or strangles on key indices like the SPX before Friday could be profitable if Powell’s speech surprises the market. These strategies benefit from large price moves, making them suitable for significant events like this speech. While today’s NAHB Housing Market Index is the only notable release, it probably won’t cause much movement. This index has been below the crucial 50-mark for months, showing how higher interest rates have affected the housing sector. It’s just another piece of the economic puzzle Powell will discuss at the end of the week. Create your live VT Markets account and start trading now.

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