Fed chair Janet Yellen will address the conference Friday, with investors focusing on what she has to say about its plans for monetary policy.
Advertisement
“We are close to our targets”, Fischer said, but did not directly address when the USA central bank should next raise interest rates. “The exchange traded funds have not risen significantly and that should be a short-term bearish signal for gold”, To said, adding that gold might soon test the level of $1,280-$1,300.
The dollar rose on Monday, tracking short-dated U.S. Treasury yields after comments from Federal Reserve Vice Chairman Stanley Fischer revived bets on a U.S. interest rate hike by the end of this year.
Signs of post-Brexit economic stability lifted the euro.
Elsewhere, USD/CAD shed 0.26% to 1.2912. Oil extended its biggest loss in three weeks before the release of USA crude inventory data.
The kiwi dollar rose around a third of a cent to $US0.7310 in reaction.
Traders have priced in an 18 percent chance of a rate hike for September and a 40.6 per cent chance for December, according to the CME Group’s FedWatch tool. May was also revised upward, to 1.9 percent. It lost 1 cent on Friday to $50.88.
The dollar index rose for the second day, after five straight sessions of losses, on prospects of a rate hike in the coming months. Syngenta’s rally helped push Switzerland’s SMI up 0.9%.
Only Fed chief Yellen can give clearer cues in the Jackson Hole, Wyoming, meeting, where central bankers from around the globe will meet from August 25.
Interest rate futures contracts indicate that the market is pricing in about 50/50 odds of a US rate increase by the end of the year.
The market fell due to a mixture of profit-taking from Monday’s short gain and the “risk-off mood” ahead of Yellen’s speech, said Victor Felix, an analyst with Manila-based AB Capital Securities. London’s FTSE 100 was up 1.3 points at 6,860.31.
Oil prices fell on Monday as analysts said they doubted upcoming producer talks would rein in oversupply.
USA 10-year Treasury yields touched a two-week high of 1.60 per cent on Monday while shorter-dated yields touched levels not seen since Britain’s shock vote to leave the European Union in June.
Oil settled down more than 3 percent on Monday, retreating from last week’s two-month highs, on worries about burgeoning Chinese fuel exports, more Iraqi and Nigerian crude shipments and a rising USA oil rig count. USA crude prices were down 2.74 percent to $47.19 a barrel.
On Friday, the loonie snapped a almost two-week winning streak as domestic retail sales data disappointed. It hit a six-week high of $48.75 on Friday. Regeneron Pharmaceuticals, Vertex Pharmaceuticals and Alexion Pharmaceuticals all were up 3 percent or more.
The New Zealand dollar blipped higher after the country’s central bank forecast another 35 basis points in possible rate cuts, less than many investors had wagered on.
Advertisement
A stronger dollar also weighed on metal prices as it hampers demand by making the asset more expensive for those buying in other currencies.
