In Asian trading, the dollar / yen strengthened by 0.23 percent as of 07:50 GMT on Thursday, and is trading at 109.29, as the dollar rebounded across the board, while sentiment continued to improve, despite on political instability in Washington.
US stock markets were trading under pressure on Wednesday against the backdrop of President Donald Trump’s threat to close the government over the reluctance of Congress to fund its controversial wall on the US-Mexico border.
These comments also affected the US currency, as they increased the uncertainty about the future of key issues for the Trump administration, such as the long-awaited tax reform and the US Health Act, which is designed to repeal and replace the so-called Obamacare.
But dollar losses were limited by the rise in speculation around the Jackson Hole Symposium, which should feature Federal Reserve Chairman Janet Yellen, President of the European Central Bank Mario Draghi, and Governor of the Bank of Japan Haruhiko Kuroda.
Investors believe that central banks will use the annual event to give some advice on future changes in current monetary policy configurations, such as a plan to end the federal budget balance of $ 4.5 trillion or reduce monthly bond purchases in the eurozone.
On the data front today are initial applications for unemployment benefits and existing housing sales in the United States at 12:30 GMT and 14:00 GMT, respectively. Japan will release its main consumer price index in July at 23:50 GMT.
From a technical point of view, we see strong support at 108.50, and this is unlikely to lead to its breakthrough. Going to 111.00 seems to be a more tangible option if the speech of Fed Chairman Yellen supports investor confidence.