Dollar flatlines ahead of Yellen, Draghi at Jackson Hole
The dollar was steady on Friday after its strongest weekly run since March and world stocks were near all-time highs as markets waited for steers from the Federal Reserve and ECB on diverging policy plans.
European shares FTEU3 opened barely changed and heading for their biggest weekly gain since February, while Asian markets hitched a ride on another record close for Wall Street to end the week near a six-and-half-year high.
Emerging market stocks were also stronger but investors were beginning to move to the sidelines ahead of speeches by Fed Chair Janet Yellen and ECB President Mario Draghi at the annual gathering of central bankers in Jackson Hole, Wyoming.
Talk will focus on labour markets and economic prospects but traders will be listening for any clues about the timing of U.S. interest rate rises and how the ECB plans to tackle the euro zone’s stubbornly low inflation.
“Everyone expects her to make another speech that the labour market isn’t as rosy as the headline employment numbers suggest,” Aberdeen Asset Management portfolio manager Luke Bartholomew said.
“We are all set up for her to be dovish, so the surprise would be if she wasn’t.”
With that uncertainty in mind, the dollar .DXY was hovering just below its 2014 peak against a basket of major currencies, as the euro at $1.3280 stayed just away from an 11-month low of $1.3242 struck on Thursday.