Dollar may strengthen after Jackson Hole summit

Baku. 25 August. REPORT.AZ/ Financial markets are in anticipation of the summit of heads of central banks, which today will begin its work in the resort town of Jackson Hole in the US. The head of the Federal Reserve System (Fed) Janet Yellen will speak at the summit at 18:00, the Chairman of the European Central Bank Mario Draghi at 11:00 pm, Baku time.

Analytical Group of Report News Agency believe, important statements during the speeches are not expected, but a number of points may lead to an increase in the current dollar rate. For example, probability of reduction in Fed's balance sheet from September and decrease in the discount rate by the end of the year. At the same time, the concern of the ECB in connection with the strengthening of Euro by 10% since the beginning of the year could cause the Euro to fall against the dollar. In this situation, the pair's rate may fall below the level of 1.17 USD/EUR. 

If the heads of the Fed and the ECB do not touch on the above topics, the euro may rise to 1,19 USD/EUR. 

Notably, at present the exchange rate of the main currency pair is equal to 1,18 USD/EUR.