Euro edges higher, U.S. dollar collapses against the safe-haven yen

European equities

Wednesday, the euro rose higher, mending from previous lows. However, gains on strong private sector growth data from Germany remained subdued as investors are waiting for speeches from ECB President: Mario Draghi this week. The euro traded at $1.1768 in early trade, which was 0.1% higher after wilting half a percent against the greenback on Tuesday.

Investors are expecting speeches from Fed Chair Janet Yellen and Mario Draghi at Jackson Hole on Friday.

In accordance to the European Central Bank President: Mario Draghi’s speech, Antje Praefcke, an FX strategist at Commerzbank in Frankfurt said that he does not expect the ECB President to say anything extensive on policy direction, given that it’s just a few weeks before the anticipated ECB policy meeting, and the event—the speech which was about to occur this week, may not be a non-starter.

In the meantime, the United States dollar collapses against the safe-haven yen, right after United States President: Donald Trump elevated the possibility of a government shutdown to accomplish a campaign pledge, claiming that “If we have to close down the government, we are building that wall” said the United States President in a rally with his supporters in Phoenix. The greenback traded at 109.43 yen JPY= which was down by 0.14% against the safe-haven yen.

 

 

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