ECB signals no shift likely at Jackson Hole

The euro briefly dipped below $1.17, after sources signalled European Central Bank chief Mario Draghi would not use his Jackson Hole appearance to signal policy change by the bank.

Trading at $1.1752 at 0754 GMT, the single currency fell as much as half a cent to a low of $1.1691 from $1.1750 in the 15 minutes after Reuters reported Draghi would not deliver a new message at the U.S. Federal Reserve conference.

It later recovered ground to trade at $1.1734, roughly flat on the day.

The euro has gained 11.5 percent so far this year against the dollar and is the best performing currency in the G10 FX space with most of its gains coming in recent months on growing bets that the European Central Bank will start unwinding its massive policy stimulus.

Reuters

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
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