US dollar is lower today, dropping as the central banker symposium in Jackson Hole gets underway. Ben Bernanke is expected to speak, and that is to be the highlight of the conference — especially since ECB President Mario Draghi has pulled out of the conference.
Ben Bernanke‘s remarks are highly anticipated, since he is the Chair of the most powerful central bank system in the world. United States monetary policy goes beyond its borders and affects the global economic outlook, as well as the way markets behave around the world.
No one expects Bernanke to announce another round of quantitative easing just yet. There is a heated presidential contest going on, and many expect any announcement to come after the race has been decided. However, Bernanke is still expected to offer clues about what he thinks will be next for the economy, and the actions the Federal Reserve is expected to take in order to head off disaster.
For now, the US dollar is lower against its major counterparts on the expectation that some sort of word in support of the economy will be given. Risk appetite is making its appearance and helping high beta currencies.
At 12:59 GMT EUR/USD is up to 1.2611 from the open at 1.2508. GBP/USD is up to 1.5883 from the open at 1.5785. USD/JPY is down to 78.3720 from the open at 78.6250.
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