The dollar was poised for weekly gains against most of its 31 major peers before Federal Reserve Chair Janet Yellen speaks today at a meeting of central bankers in Jackson Hole, Wyoming.
The U.S. currency retreated from an 11-month high against the euro as technical indicators signaled recent gains were too fast. The Bloomberg Dollar Spot Index reached the highest level in six months after minutes this week of the Fed’s July meeting suggested policy makers may increase interest rates sooner than anticipated. The pound was set to decline for a seventh week, the longest losing streak since September 2008.
“The story of the week has been significant U.S. dollar strength, based on encouraging data and the Fed minutes,” said Ray Attrill, the global co-head of currency strategy at National Australia Bank Ltd. in Sydney. “The story overnight has just been some position trimming before Jackson Hole.”