FXstreet.com (Córdoba) - The US dollar is lower overall and the euro is higher, as market participants remain in waiting mode ahead of this Friday's speech from Fed Chairman Bernanke at the Jackson Hole conference, according to the Wells Fargo team.
"Eurozone economic data was constructive overall and today's European debt auctions went smoothly", they comment. "The euro also seemed to gain support on news that ECB President Draghi would not attend the Fed's conference – the interpretation being instead that he will be busy finalizing the details of policy proposals to be unveiled in the coming weeks. The euro also advanced despite a request from the Catalonia region for E5B in financial assistance from the Spanish government, they add.
"While we do not anticipate significant FX movements during this waiting period, we do maintain an overall bias towards improving market sentiment", Wells Fargo says. "Consequently, we see some potential for U.S. dollar weakness and foreign currency strength in the coming days".
"Eurozone economic data was constructive overall and today's European debt auctions went smoothly", they comment. "The euro also seemed to gain support on news that ECB President Draghi would not attend the Fed's conference – the interpretation being instead that he will be busy finalizing the details of policy proposals to be unveiled in the coming weeks. The euro also advanced despite a request from the Catalonia region for E5B in financial assistance from the Spanish government, they add.
"While we do not anticipate significant FX movements during this waiting period, we do maintain an overall bias towards improving market sentiment", Wells Fargo says. "Consequently, we see some potential for U.S. dollar weakness and foreign currency strength in the coming days".
