Note: This story has been updated after Fed Chief Janet Yellen’s remarks in Jackson Hole earlier this morning.
The US dollar is trading higher after Fed Chair Janet Yellen’s comments today at the Jackson Hole Economic Symposium left traders feeling more optimistic for an interest rate hike before the end of the year. The greenback was trending lower before Yellen’s comments, as the US’ 2nd quarter GDP grew at a weaker-than-expected 1.1% annualized. The dollar’s rebound this morning against other major currencies have led the pound and euro to lower.
The pound is down against a strengthening US dollar. The currency was rallying before Yellen’s speech after revised Q2 GDP data showed the UK economy growing by 0.6% for the quarter leading up to the Brexit vote, as analysts expected. The British currency is still trading at nearly month-highs against the US dollar on recent optimism for the UK economy.
The euro is also down against the stronger greenback as well. The shared currency was getting light tailwind earlier this morning as consumers out of France and Germany remain confident in their economies two months after the Brexit vote. France’s Q2 GDP and Portugal’s retail sales results for July showed steady growth and resilient economies, similar to what other Eurozone economies have shown in recent weeks.
The Australian dollar is trading higher with no significant data out, while the Canadian dollar is weakening against the stronger greenback despite oil prices creeping up.
EURUSD: The euro is trading lower against the stronger dollar, even as consumer and business confidence in France and Germany remains upbeat.
GBPUSD: The pound is also down against a rallying dollar, though Q2 results showed a steadily growing UK economy in the quarter leading up to the Brexit vote.
AUDUSD: The Aussie dollar is climbing against a weaker US dollar with no new data out.
USDCAD: The Canadian dollar is falling compared to a stronger greenback with little new data out.