U.S. dollar declines after Yellen speech

U.S. dollar declines after Yellen speech

U.S. dollar declines after Yellen speech

Mr Draghi said global efforts are the best way to address rising concerns about fairness, equality and security that have surfaced amid the relatively slow economic growth in the USA and Europe since the financial crisis.

Federal Reserve Chair Janet Yellen issued a stark warning that the next financial crisis could come at any time, staunchly defending post-recession regulatory changes that have come under political fire recently in what many expect to be her final major speech.

Japan's Nikkei 225 slipped 0.4 per cent to 19,353.77 but South Korea's Kospi rose 0.4 per cent to 2,375.84.

Federal Reserve Chair Janet Yellen had a clear message for the Trump administration Friday in what could be her final Jackson Hole speech: Undoing the hard work of overhauling the financial system after the financial crisis could have risky consequences.

The dollar index, which tracks the United States currency against a basket of six other major currencies, gained 0.08 per cent to 93.22 after falling 0.4 per cent on Wednesday.

The EURUSD pair finished the week at its highs in what was essentially a tiresome week for most of the time which sprung into life late in Friday night as Draghi and Yellen took center stage.

"Comments by Yellen and Draghi may provide volatility for the dollar, and thus dollar-denominated commodities", said Hans van Cleef, senior energy economist at ABN AMRO in Amsterdam.

Trump Called GOP Sen. About His Bill To Shield Special Counsel
The statement added that Trump and McConnell would meet on these issues after the August congressional recess. Trump risks obstruction charge pressuring McConnell on Russian Federation ...

Rates futures implied traders saw a 37.2 percent chance of a rate hike at the Fed's December meeting, down from nearly 39 percent on Thursday, CME Group's FedWatch tool showed.

Yellen's predecessor, Ben Bernanke, signaled a new round of Fed bond purchases in 2010 to try to invigorate a weak USA recovery.

On the US economic front, the Commerce Department released a report showing a sharp pullback in durable goods orders in the month of July. However, orders for transportation equipment plunged 19%, weighing on the overall orders for durable goods. The business sentiment index fell to 115.9 in August from July's record high of 116.

MSCI's index of stocks across the globe .MIWD00000PUS rose 0.26 percent and its index of emerging market stocks .MSCIEF rose 0.27 percent. This was enough signal for the market, that was already long on the euro, to buy even more euros and this helped the pair to move through 1.19 and end the week at the highest levels that it has been since 2015.

Meanwhile, a speech by European Central Bank President Mario Draghi gave little guidance on tapering the bank's bond holdings and heralded globalization over protectionism.

The Dow Jones Industrial Average gained 0.1 per cent to 21,813.67.

Recommended News

  • Trump's Executive Order For Venezuela Targets Maduro's Financing

    Trump's Executive Order For Venezuela Targets Maduro's Financing

    The body is charged with rewriting the country's 1999 constitution and has given permission to Maduro to rule by decree. The order also permits the Treasury Department to help finance humanitarian aid for Venezuela citizens.
    Ronald Koeman happy with Wayne Rooney's global  retirement call

    Ronald Koeman happy with Wayne Rooney's global retirement call

    However, having already thought long and hard , I told him I had chose to retire for good from worldwide football . It was on the 4th of September, 2016, that the striker broke yet another record in his fine England career.
    Navy to replace commander of 7th Fleet after latest collision

    Navy to replace commander of 7th Fleet after latest collision

    Meanwhile, questions abound as to whether the vessel's electronic defenses were the target of a cyberattack. It was the second major collision in two months involving the Pacific-based 7th Fleet.
  • United States  far-right group relinquishes permit for Saturday rally in San Francisco

    United States far-right group relinquishes permit for Saturday rally in San Francisco

    Concerned about possible violence, city officials have urged residents to stay away from other gatherings on Saturday and Sunday. Hundreds of protesters gathered at San Francisco's Alamo Park to denounce white supremacy on August 26, 2017.
    Trump lauds chief of staff reported to establish White House control system

    Trump lauds chief of staff reported to establish White House control system

    It is an ideology of evil that should be criticized by President Trump and everyone in his administration, including Gary Cohn . We've discussed this on this show during the primary season, but Bill Gates has said today that Trump could be a new JFK.
    Saudi-led airstrike kills 48 in Yemen

    Saudi-led airstrike kills 48 in Yemen

    Officials and witnesses told the Associated Press that the death toll was 60 and that the majority of those killed were rebels. Sanaa is packed with armed men and armored vehicles, fueling fears of open clashes between Saleh's forces and the Houthis.
  • All Blacks coach Steve Hansen backs Wallabies as 'great side'

    Soon after though, they were sprung, as Aaron Smith snuck through from the base of a scrum to bridge the gap to three points at the half.
    Yingluck may have fled Thailand before ruling, minister says

    Yingluck may have fled Thailand before ruling, minister says

    Former Thai PM Yingluck Shinawatra has fled overseas , sources say, ahead of a verdict in her trial over a rice subsidy scheme . The scheme in which farmers were paid up to twice the market rate for their crops allegedly benefitted many of her supporters.
    Minister congratulates pupils on results in 'reformed' GCSEs

    Minister congratulates pupils on results in 'reformed' GCSEs

    Jack Isaac gained one A* and four As among a good set of results and said the teachers had proved very supportive. Our results are up on a year ago , yet in many ways this is a completely different exam just with the same name.
  • Manchester United fans fully support Jose Mourinho's change for Leicester match

    Manchester United fans fully support Jose Mourinho's change for Leicester match

    While it did embolden Leicester enough for Riyad Mahrez to fire a couple of rare shots on goal, the United manager had a point. While he'll play no part in this match, it's still an a tough test this early in the season for Shakespeare's men.
    President Trump is dividing the country

    President Trump is dividing the country

    Another 10 percent said of those surveyed said they either did not know or were not certain which option they preferred. On the subject of tweeting, 69 percent of voters think President Trump should stop tweeting from his personal account.
    USA  and Russian Federation  commanders exchange '10-12 calls' a day on Syria

    USA and Russian Federation commanders exchange '10-12 calls' a day on Syria

    Advancing overnight, troops north and south of Badiya met up and seized Jabal Dahek, said the Syrian Observatory for Human Rights. On 6 June, the SDF and coalition forces launched the final phase of their operation to recapture Raqqa from IS control.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.