Dollar starts week under pressure, markets eye major events

Dollar posted slight losses in Europe Monday, falling to a 2-week low against the Japanese yen by the most since April with investors sitting on the sidelines ahead of the Federal Reserve’s annual economic gathering in Jackson Hole later this week. Feds Chair Janet Yellen is scheduled to deliver a speech on 22 August.

Dollar weakened on the first day of the week, pressured ahead of data forecast to show inflation slowed and before central bankers meet at an annual conference in Jackson Hole, Wyoming.

Investors will be also keeping an eye on Federal Open Market Committee meeting minutes due out Wednesday to confirm how the Fed’s hawkish bias hawkish has developed.

US currency traded at 81.49 as of 12:56 GMT+3 after opening at 81.48. The USDIX index so far recorded intraday high at 81.52 and low at 81.42.

Against the Japanese yen, dollar traded at ¥102.439 after starting the day at ¥102.314, the USDJPY pair so far recorded intraday high at ¥102.485. Investors will be closely monitoring any lingering tension between Russia and Ukraine, as well as in the Middle East.

The pound was little changed in Europe, having adding the most in two weeks versus the dollar as investors await meeting minutes from the Bank of England (BOE) this week for clues on when it will raise record-low interest rates.

Over the weekend, Mark Carney, the governor of the Bank of England, made an about-face and said that he wouldn’t necessarily wait for improvement in real wages before considering a rate hike.

Pound remained unchanged at $1.67262 after opening at $1.67296.

The United Kingdo was also due to release Tuesday first-tier consumer and producer prices data for the month of July, expected to show annual inflation is still holding near to the Bank of England’s 2 percent target.