The pounding is increasingly being felt by currency investors in the European session who are expecting leads from Federal Reserve (Fed) Chairman Jerome Powell in Jackson Hole tonight.
The US dollar returned to gains after trading lower in the previous session, with the dollar index trading at 93.06 against six other major currencies.
Previously, statements from several Fed policymakers supporting a reduction in bond purchases this year have supported the U.S. dollar. Still, with Powell’s always dovish stance, it makes investors doubt whether he’ll give a hint about it tonight.
Following the development of the European currency, the pound tried to hold on to the price level of 1.37000 against the USD, and was on track for its first weekly rise since the end of July.
Meanwhile, a dovish European Central Bank (ECB) meeting failed to influence trading the euro currency traded stable during the European session despite a slight decline due to the rise of the US dollar.
On the other hand, the Aussie and New Zealand dollars remain stable and will close this week's trading positively. Developments on Covid-19 in Australia and New Zealand are still being followed by investors.
Australian retail sales plunged further in July with a decline of 2.7%. This has led analysts to again predict that the Reserve Bank of Australia (RBA) will withdraw plans to reduce bond purchases at its September policy meeting.
Meanwhile, the Canadian dollar slipped slightly from its gains this week, but remained stable with continued strong support for crude oil prices.
