Dollar inches lower as investors await Yellen's Jackson Hole speech
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Light is cast on a U.S. one-hundred dollar bill next to a Japanese 10,000 yen note in this picture illustration shot February 28, 2013. REUTERS/Shohei Miyano/Illustration/File Photo
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) - The dollar slipped on Thursday as some investors squared positions before the annual global central bankers' gathering in Jackson Hole, Wyoming, where Federal Reserve Chair Janet Yellen may offer new guidance on U.S. monetary policy.
Recent upbeat statements on the U.S. economy by Fed officials including Vice Chairman Stanley Fischer and New York Fed President William Dudley have prompted investors to raise bets interest rates will increase sooner rather than later. Some believe Yellen could echo their signals.
"Our expectation is that a hawkish message from Fed Chair Yellen this week will pave the way for a September hike, which should help the U.S. dollar recover some ground," said Daniel Katzive, head of North America FX strategy at BNP Paribas in New York.
"However, we do not expect the Fed to signal or embark on a series of rate hikes, which should limit the extent to which U.S. real yields can recover from current low levels."
U.S. data on Thursday added to the bullish outlook on interest rates, with a 1.6 percent rise in a key measure of U.S. durable goods orders for July and a fall in initial weekly jobless claims.
After the release of the U.S. data, futures markets were indicating a 24 percent chance the Fed will hike rates at its policy meeting next month and a roughly 57 percent chance of an increase in December, according to the CME Group's FedWatch.
Some analysts, however, believe Yellen could stick to her dovish stance. U.S. data, while solid of late, are not strong enough to warrant a rate increase this year, they said.
"The U.S. economy is doing better than most, but it's not on fire," said John Doyle, director of markets at Tempus Consulting in Washington. "Inflation is still super low. So the Fed does not really need to raise rates right now."
In late trading, the euro rose 0.3 percent against the dollar to $1.1293
The dollar was flat against the yen at 100.49 yen
The yen could also come under pressure on growing expectations the Bank of Japan will take additional stimulus steps at its next meeting in September.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Meredith Mazzilli and Chizu Nomiyama)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- ECB contemplated bolder stimulus before compromise: sources
- Kenya oil tanker accident kills at least 25 in fire: Red Cross
- Indonesia counter-terrorism forces foil plot to bomb state palace: police
Create E-mail Alert Related CategoriesForex, Reuters
Related EntitiesDurable Goods Orders, William Dudley
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!