The Euro slipped against the U.S. Dollar in anticipation of Federal Reserve Chairman, Ben Bernanke’s upcoming speech at the economic summit in Jackson Hole, Wyoming, on August 26th. Investors are speculating that Chairman Bernanke may announce that the central bank will take further steps to help boost the U.S. economy. The Reserve Chairman is expected to discuss the possibility of buying added debt, reducing interest rates on excess reserves, and increasing the maturity of bonds.
Meanwhile, the Yen weakened versus the greenback after Japan’s Finance Minister, Yoshihiko Noda, indicated that he’s ready to act in order to lower the currency’s overvaluation.
The Euro continued to dip as German Chancellor, Angela Merkel, issued a statement emphasizing her opposition to issuing Euro-region bonds in order to stop the crisis from spreading. Forex market analysts say that traders believe that ECB President, Jean-Claude Trichet, will be instrumental in preventing the Euro from collapsing, despite the fact that the crisis now threatens to spread to Italy and Spain.
Other Forex money reports revealed that the Swiss Franc weakened against all of its counterparts on speculation that the Swiss National Bank will implement measures to curb demand for the Swiss currency. The bank has already cut interest rates to zero and increased deposit requirements.
Lastly, FX rates for both the Australian and New Zealand Dollars advanced against the greenback in anticipation of the upcoming announcements by the Federal Reserve.