Greenback Slides After Janet Yellen’s Speech. Markets were disappointed on the Janet Yellen speech last Friday. Traders sold the dollar and pushed bond yields down. The dollar index slid nearly 1% to the 92.4 area continuing its bearish trend. Catastrophic flooding in Houston would likely further weigh on the U.S. dollar as it is a major negative weather event and obviously bad for the economy.
Euro Jumps After ECB’s President Speech. The euro climbed to a 2-1/2-year high on Monday after the ECB President Mario Draghi held back from talking down the currency and as markets worried about the impact of Tropical Storm Harvey on the U.S. economy. The euro reached $1.1966, its highest since January 2015.
Gold Rises To 1-Week High. Gold price advanced on Monday to its key resistance levels at US$1,295, extending gains from the previous session, after Federal Reserve Chair Janet Yellen skipped any mention of monetary policy in a speech at a central bankers meeting in Jackson Hole.
Hurricane Harvey Drives Oil Up. Oil prices rose as the dollar fell and as the U.S. petroleum industry braced for Hurricane Harvey, which could become the biggest storm to hit the U.S. mainland in more than a decade.
