Market Review - 24/08/2016 23:02 GMT
Dollar advances as traders look to Yellen for rate hike clues
The following report is taken from Thomson Reuters currency report.
The dollar rose on Wednesday in thin trading, helped by data the previous day showing a surge in U.S. new home sales, but gains were capped by uncertainty ahead of Federal Reserve Chair Janet Yellen's speech at a central bankers' conference on Friday.
Policymakers from across the globe will gather in Jackson Hole, Wyoming later this week, with the focus squarely on Yellen. Investors expect her to provide guidance on the Fed's next rate hike. The U.S. central bank raised rates for the first time in nearly a decade in December, but has held off further moves so far this year.
Late on Wednesday, futures markets assigned an 18 percent chance the Fed would hike rates at its policy meeting next month, and a roughly 50 percent odds of a rate increase in December, according to CME Group's FedWatch tool.
Any indication that a September hike is in the cards should produce a dollar surge, analysts said.
Recent hawkish comments from Fed Vice Chairman Stanley Fischer and New York Fed President William Dudley have raised expectations that Yellen might shift to a less cautious stance, though some investors remain doubtful.
Data showing a fall in U.S. existing home sales for the month of July did not have much impact on the dollar. The report from the National Association of Realtors followed data on Tuesday that showed U.S. new home sales surged to nearly a nine-year high last month.
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