The dollar is giving back some gains this morning after durable goods for July disappointed and before Fed Chairman Jerome Powell speaks in Jackson Hole. The low-level trade talks between the U.S. and China failed to yield any resolutions, or even plans of future talks.

Durable goods miss dips dollar

The greenback fell Friday morning after durable goods orders for July came out worse than expected.

The cost of orders received by manufacturers was expected to decline 0.5%, but came out at -1.7%. durable orders excluding transportation also missed expectations, coming out at 0.2% compared to 0.5%.

EUR/USD climbed up to 1.159 from the lows of 1.153 Thursday. The GBP also gained on the dollar, with the pair jumping from 1.282 to 1.285.

Fed’s Bullard speaks out against rate increases

As Jerome Powell takes the stage at 10 a.m. EST, one Federal Reserve President spoke out against rate increases during the Jackson Hole symposium.

St. Louis Fed President James Bullard said there is no reason to challenge the yield curve at this time. Bullard currently not a voting member of the Federal Open Market Committee (FOMC), but he will be next year.

“Inflation is low, it is stable, it is barely up to target. We don’t need to be preemptive on the yield curve,” Bullard told Bloomberg Television in an interview at the event.

The comments come before Jerome Powell takes the stage after recent public commentary by President Trump against the rate increases.

Trade talks end with no future in sight

The trade talks between the U.S. and China failed to result in any measurable action, and some reports suggest that china is no longer interested in talking until after the November mid-term elections.

The talks end as more tariffs take effect and other tariffs could happen as early as September.

The markets didn’t react dramatically to the failed talks, mainly because expectations were somewhat low.