Asian session review: the dollar declined before the speech of the head of the Fed Powell

During today's Asian trading, the US dollar fell against the euro and the yen before the speech of the head of the Federal Reserve System (Fed) Jerome Powell at the economic symposium in Jackson Hole.

Hopes that Powell will announce the timing of the curtailment of the asset repurchase program in Jackson Hole have supported the US currency in recent days, but with the approach of his speech, traders ' hopes that the head of the Federal Reserve will make such a statement have decreased, and this weakened the dollar.

The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell by 0.13%.

The euro, the yen and the pound may weaken against the background of the likely closing of short positions on the dollar before Powell's speech, DBS experts believe.

"Market participants may think that they have hurried to expect nothing from the symposium in Jackson Hole," analysts note.

On the eve of the heads of the Federal Reserve Banks  of St. Louis, Dallas and Kansas, James Ballard, Robert Kaplan and Esther George said that they are in favor of a rapid reduction in the volume of asset purchases by the Fed, despite the risks associated with the"delta".