Euro recovers from lows

The euro rebounded from the day’s lows yesterday but held well below a two and a half year high hit earlier this month as markets bet the single currency’s double-digit gains this year may be too much for a central bank that is still wary of removing stimulus.

With very little in the way of top-tier economic data, market watchers are focused on the annual central banking conference in Jackson Hole this week where the world’s top central bankers may signal their next policy actions.

Though bets of a policy change have been reduced in recent days, amid the general political turmoil in the US, expectations of a Fed rate hike may rise if chair Janet Yellen emphasises that the risks to inflation objectives and financial stability require careful monitoring in her speech on Friday.