The dollar slipped on Thursday as some investors sold the currency before the annual global central bankers’ Economic Symposium in Jackson Hole, Wyoming, where Federal Reserve Chair Janet Yellen may offer new pointers on US monetary policy with a topic on “Designing Resilient Monetary Policy Frameworks for the Future.” Said gathering kicks off on Thursday with a reception and opening dinner.

Recent hawkish statements by Fed officials like Vice Chairman Stanley Fischer and New York Fed President William Dudley have prompted some investors to raise their expectations that US interest rates will rise sooner rather than later, and some believe Yellen could echo their signals. These expectations have helped raise the dollar in the previous days, but the excitement has died down leading to a drop in the greenback.

Data as of late, like the reports on US jobless claims and durables goods orders, pointed to sluggish productivity and subdued inflation, suggesting the Fed could stay on hold for longer. The dollar muted as the uncertainty over whether Yellen would announce another rate hike or not was enough to keep most investors on the sidelines.

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US Futures and Dollar Index

Wall Street futures opened lower on Thursday with the data on the labor market, durable goods and service sector on tap. The blue-chip Dow futures lost 42 points, or 0.23%, by 10:57am GMT, or 6:57am ET. The S&P 500 futures fell 5 points, or 0.22%, while the Nasdaq 100 futures traded down 11 points, or 0.24%

The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dropped 0.14% to 94.61 by 10:58am GMT, or 6:58am ET.

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Dollar against Major Currencies

The dollar slipped lower against the other major currencies as investors grew more and more cautious of Yellen’s speech. EUR/USD is bullish with the overnight low of 1.1242 was just a couple of pips above stops at 1.1240. GBP/USD shifted from neutral to bullish, the break of the key 1.3250 resistance indicates the start of a sustained up-move in GBP towards the 1.3340/45 high seen earlier this month. AUD/USD remained neutral, up at 0.16% at 0.7625, but expected to stay under increasing downward pressure unless it can move and stay above 0.7660. Like the aussie, kiwi is also neutral in a 0.7170/0.7350 range. Lastly, the dollar has turned gopher bearish, trading at 100.39, while USD/CHF fell 0.23% to 0.9647.

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