By: DailyForex.com
The US Dollar weakened broadly and slid below the 100 Yen level earlier as FX traders refocused on the upcoming events at Jackson Hole, the Federal Reserve Bank’s annual symposium. Though recently there has been hawkish rhetoric coming from the Fed’s FOMC members, the main event is the speech on Friday by Janet Yellen, the Chairman of the Federal Reserve. Markets are anxious to hear her take on the possible timing of an interest rate hike. This past weekend, the Fed’s Vice Chair had told reporters that the Fed’s mandate was near to being met which prompted investors to conclude an imminent rate increase.
As reported at 10:50 am (BST) in London, the USD/JPY was trading at 100.54 Yen, down 0.18% while the EUR/GBP was at $1.1329, up 0.06%. The AUD/USD was up 0.11% to trade at $0.7641 while the NZD/USD was at $0.7327, up 0.45%.
Kiwi Strengthens on Wheeler Comments
The Kiwi Dollar is the currency market’s biggest mover following comments made by the Governor of the Reserve Bank of New Zealand. Graeme Wheeler had said that the RBNZ no longer saw the necessity of rapid rate cuts which helped the Kiwi Dollar to gain 1% against the greenback. Earlier this month, the RBNZ cut its cash rate by 0.25% to 2.0%, and indicated that more easing could be ahead. Currency strategists say that the Kiwi’s last rally could be short-lived depending on the outlook for the US Dollar after the Jackson Hole meeting.