Yesterday was a calm day in terms of trading, though the currencies had some low volatility. The euro picked up against the majors, while greenback fell widely.
The single currency rose against all the majors, though EUR bulls are cautious due to the looming Jackson Hole Symposium. ECB President Mario Draghi speaks at the symposium on Wednesday, however, we wouldn’t expect him to say anything new for the economy at this meeting. Investors and ECB policymakers are probably waiting for the inflation updated data to gauge policy changes that may happen in September.
On the other hand, Fed will probably raise rates in December, thus Fed Chair Janet Yellen’s speech will be under the microscope as well. The latest U.S. headline inflation dropped below Fed’s 2% inflation target and Yellen’s comments on this will be significant for dollar’s direction. The U.S. dollar had a negative day following the White house tensions and the geopolitical risks with North Korea. The White House spokesman Chief Strategist Stephen Bannon, who helped Donald Trump win his presidential elections, left his position after months of disagreements with other senior advisors. While before that, Trump removed him from his staff.
Read the full financial markets daily report on JFD Research.