Dollar drifts lower ahead of Jackson Hole conference - ANZ

Analysts at ANZ explained that despite an absence of news or data ahead of the Jackson Hole conference, the USD drifted lower. 

Key Quotes:

"USD weakness vs JPY – possibly reflecting ongoing tensions surrounding North Korea - seemed to weigh on the USD in general as the market favoured safe-haven current account surplus currencies.

With Fed Chair Yellen scheduled to speak at Jackson Hole this week on financial stability, the market’s main focus remains on Draghi (7am Saturday NZT). The ECB minutes of the July meeting published last week stressed a preference for very gradual and well documented communication to financial markets regarding the evolution of policy guidance owing to the risk of tighter financial conditions, especially the exchange rate. The DAX was off 0.8%, the CAC 40 dropped 0.5% and the FTSE 100 outperformed (unchanged) its European peers, as sterling’s decline vs EUR continued. US equity indices were broadly flat with energy and financial stocks down, but utilities, real estate and consumer indices providing an offset. Bond yields were pressured slightly by lower energy prices. European bond yields declined 1-2bps, and more in the UK with GBP remaining under pressure. US yields only dropped 1-1.5bps across the curve. Oil prices were under pressure with WTI falling ~2.3% to $47.40/bbl as Bloomberg reported some unwinding of positions speculative longs. High US output and OPEC reportedly unlikely to seek deeper production cuts at this week’s meeting also appear to be factors."