What had markets expected from the Jackson Hole Symposium? In any case, Yellen did not provide any surprises. And this was enough to send the US dollar tumbling down.
The Chair of the Fed discussed changes to financial regulations and said they should be modest. This is not market-related. Will she say something else during the weekend-long retreat at Jackson Hole?
Here is the euro/dollar chart reflecting the move. The pair was quite asleep or “on vacation” when the text appeared. It then jumped from just under 1.18 to a peak of 1.1868 before sliding to 1.1850.
The US dollar is also falling against the yen. The pair was rejected at resistance, around 109.90, and is now 50 points lower.
The beaten pound found some relief with a jump to 1.2870. Brexit and GDP had weighed on the currency.
The Canadian dollar is advancing, with Dollar/CAD drifting below 1.25.
AUD/USD is on the rise, trading around 0.7950. Can it make it to 0.80?