- Dollar gaps higher against counterparts over the weekend
- U.K. banks closed today on Summer Bank Day holiday
- German Ifo business climate index to drop from 108.0 to 107.1?
No data? No problem! Not even the lack of top-tier releases in today’s Asian trading session was enough to keep forex pairs from moving, as the U.S. dollar tried to advance further against its counterparts. EUR/USD gapped down over the weekend as it opened at 1.3205 and dipped to a low of 1.3183. GBP/USD also opened lower at 1.6546 then reached a low of 1.6537 while USD/JPY jumped to a high of 104.29.
Most yen pairs also continued their ascent in the past few hours, as BOJ Governor Kuroda recently acknowledged the weaknesses in Japan’s labor market during his Jackson Hole testimony. GBP/JPY has climbed a few pips past the 172.50 minor psychological handle while AUD/JPY is trading above 97.00. EUR/JPY, on the other hand, gave back some of its recent gains as ECB head Draghi also had a few dovish comments in his Jackson Hole speech.
The only major event lined up in today’s London trading session is the German Ifo business climate release, which might show a drop in sentiment from 108.0 to 107.1 in August. A weaker than expected reading could push the euro lower against its rivals, as traders continue to price in higher odds of more easing from the ECB later on.
U.K. banks are closed today on a Summer Bank Day holiday, which could leave most pound pairs in consolidation, as traders try to make sense of the latest BOE meeting minutes in light of bleak data from the U.K. economy.
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