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No data? No problem! The dollar saw some action as Asian session forex traders priced in Yellen’s recent remarks and possible impact of Hurricane Harvey in the U.S.

  • No major economic reports printed during the Asian session
  • Dollar dips on not-so-hawkish Yellen speech and concerns over impact of Hurricane Harvey

Major Events/Reports:

Dollar gaps lower on Yellen, Hurricane Harvey concerns

The Greenback started the week on a weak note as Asian session traders priced in Yellen’s Jackson Hole remarks.

In Forex Gump’s recap, he detailed how the Fed head honcho refrained from talking about the Fed’s balance sheet plans and mostly avoided the subject of another rate hike. This upset some dollar bulls who had expected a more hawkish rhetoric from Yellen.

It also didn’t help that Hurricane Harvey continued to wreak havoc in Texas. While Harvey is no longer a hurricane, the “unprecedented” flooding that it’s bringing to the U.S.’ fourth-largest city could mean more casualties over the next couple of days.

Mixed risk sentiment

With no major economic report to price in, Asian session traders concentrated on the flooding in the U.S.; Yellan and Draghi’s Jackson Hole remarks, and a potentially volatile week ahead of the NFP report.

The euro remained supported on the back of Draghi’s not-so-dovish remarks, while some traders are starting to place their positions ahead of the NFP-related reports scheduled this week.

Nikkei, which did NOT like the dollar’s weakness last Friday, slipped by 0.05% to 19,442.00 while Australia’s A SX 200 is also down by 0.70% to 5,703.40. Meanwhile, Hang Seng is up by 0.51% to 27,991.00 and Shanghai index is up by 1.13% to 12,224.06.

Major Market Mover(s):

USD

The Greenback gapped lower against its major counterparts, but soon retraced its losses as traders took some of their profits off the table before the NFP-related reports start trickling in.

EUR/USD went up to 1.1960 before settling down to 1.1921;
GBP/USD opened at 1.2927 before dropping back to 1.2883;
USD/CHF gapped 11 pips lower before inching back up to .9569, and
USD/JPY hit a session high of 109.40 before slipping back down to 109.16.

EUR

Euro pairs gapped higher at the start of the session after Draghi’s not-so-dovish remarks. Like the dollar, though, it also gave up most of its weekend gap by the end of the session.

EUR/JPY hit a session high of 130.72 before falling back down to 130.13,
EUR/CHF rose to 1.1423 before settling down to 1.1408, and
EUR/AUD rose to 1.5076 before slipping back down to 1.5021 but
EUR/GBP fell to .9221 before rising back up to .9254.

Watch Out For:

  • U.K. markets out on Summer Bank holiday
  • Brexit meetings resume today
  • 9:00 am GMT: Euro Zone’s M3 money supply (y/y) and private loans (y/y)