The greenback fell to a three-week low towards the euro and a one-week trough versus the yen on Friday after Federal Reserve Chair Janet Yellen made no reference to U.S. financial coverage in her speech at the annual central financial institution analysis convention in Jackson Hole, Wyoming.
Investors weren’t anticipating Yellen to make a coverage assertion anyway, however some market members have been hoping for some sign on the Fed’s deliberate stability sheet discount, if not on the outlook for U.S. rate of interest hikes.
“At this point, there isn’t too much for Yellen to add,” stated foreign money strategist Sireen Haraji of Mizuho Corporate Bank in New York.
“The FOMC (Federal Open Market Committee) has been very clear in terms of communicating their intention to continue tightening policy very gradually, and I don’t think they see anything to change that view.”
Instead, Yellen targeted on U.S. laws, saying these put in place after the 2007-2009 disaster had strengthened the monetary system with out impeding financial progress, and any future modifications ought to stay modest.
by way of Reuters
SOURCE: MarketPulse – Read complete story here.