Monday, the greenback recovers from four-month lows versus the safe-haven yen, while investors turned their attentions towards the Fed’s annual central banking conference in Wyoming. According to the dollar index, the United States dollar was nearly unchanged and traded at 93.448 against its six major currency rivals.
Against the Japanese yen, the greenback held firm and traded at 109.22 yen, this is after dropping to as low as 108.605 yen on its last session on Friday on concerns over the United States President’s capability to pursue tax reforms and stimulus measures. In accordance to this, the incident largely shook off the consumer sentiment index of the University of Michigan, in which reflected confidence in the outlook for the country’s economy and in personal finances as the United States stock market holds near record highs.
In addition, as reports of the forthcoming resignation of Stephen Bannon, senior White House Adviser and was known for his economic nationalist views were established on Friday. President Donald Trump’s conclusion to fire Stephen Bannon could not just possibly weaken his support from voters; however, his decision might as well ease the pressure inside the White House and with party leaders as well.
Mitsui Imaizumi, chief FX strategist at Daiwa Securities in Tokyo said that the yen made moves on Bannon’s departure and the net effect might be unbiased as the market has already moved on and is now focused on Jackson Hole. He also added that as the positive economic data had small effect on the greenback, Imaizumi said that it is possible that no market-moving factors will appear from the Federal Reserve conference.