- Profit-taking ahead of Yellen’s Jackson Hole speech?
- ECB Gov Draghi and BOJ head Kuroda also set to testify
- No major reports lined up in London session
It looks like traders are booking profits off their dollar trades ahead of Yellen’s speech today! Most major dollar pairs edged higher, with EUR/USD climbing by close to 50 pips and GBP/USD retreating to a high of 1.6585. USD/JPY has been more or less steady, as price moved carefully around the 103.75 level.
Other yen pairs have shown more upside momentum, with AUD/JPY steadily advancing past the 96.00 major psychological resistance and reaching a high of 96.75. NZD/JPY is up nearly 20 pips while EUR/JPY has come within a few pips shy of the 138.00 mark.
There were no major economic reports released in the past few hours, leaving market participants to speculate on what might take place during today’s Jackson Hole conference. Some investors think that Yellen might be her usual cautious self and undermine some of the hawkish comments in the FOMC minutes while others are more excited to hear what ECB Governor Draghi and BOJ Governor Kuroda have to say.
The coast is still clear in terms of economic releases in today’s London trading session, which might leave most pairs in consolidation. If you’re planning on taking new trades or keeping your positions open, make sure you keep tabs on the announcements made during the Jackson Hole Symposium. Be careful out there!
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