Daily Afternoon Report 29.08.2017

The U.S. slipped lower against its Canadian counterpart on Tuesday, as sentiment on the greenback remained vulnerable after the Jackson Hole summit and amid fresh geopolitical tensions.

The greenback remained under pressure after a speech by Federal Reserve Chair Janet Yellen at the Jackson Hole economic symposium on Friday made no reference to monetary policy, disappointing some investors who had hoped she would adopt a hawkish tone.

Separately, market sentiment was hit after North Korea fired a missile that flew over northern Japan, in the latest act of provocation by Pyongyang.

Following the missile test, the U.S., Japan and South Korea asked for a United Nations Security Council meeting. According to diplomats, a meeting of the 15-member Security Council is scheduled to be held later Tuesday.

But the Canadian dollar’s gains were limited as investors remained cautious after Tropical Storm Harvey hit Houston, Texas, and many oil refineries in the U.S. Gulf Coast, sparking worries about the storm’s impact on the U.S. economy.

The single currency was boosted by hopes the European Central Bank will soon announce plans to taper its bond-buying stimulus program.

Though ECB President Mario Draghi gave no fresh monetary policy cues at the Jackson Hole summit, some investors interpreted his lack of comment on the recent strength of the euro as an indication that it would continue to climb.