Jackson Hole going virtual weighs on dollar sentiment
The key risk event on the week is the Jackson Hole symposium and with the event going virtual, that is signaling a lesser likelihood (or pretty much dead and buried) of any major announcement by the Fed on the taper narrative.
The dollar is struggling as such, keeping weaker across the board alongside the yen as risk trades take comfort in lieu of watered down taper expectations.
In particular, the loonie is also capitalising on its late Friday reversal as USD/CAD is down 0.4% to 1.2765 as we look to get European trading underway.
The pair has moved back below previous resistance from the July high around 1.2800 and that provides some additional comfort for sellers for the time being.
That said, there is still much work to do with the near-term bias still favouring sellers. The 100-hour moving average is only seen at 1.2725 currently and sellers will have to contest a break below that to really convince of a more significant turn.
Elsewhere, EUR/USD is holding just above 1.1700 while NZD/USD is keeping a decent bounce off 0.6800 from Friday, now up 0.3% to 0.6840 despite news of New Zealand extending national lockdown to 27 August.