Calmer tones prevail for now post-Jackson Hole
FX isn't doing much to start the day as major currencies are keeping in tight ranges as we approach European morning trade.
The dollar was weaker in the closing stages on Friday as Fed chair Powell didn't budge on tapering and that weighed on Treasury yields while helping risk trades observe a comfortable end to the week, with record closes for the S&P 500 and Nasdaq.
As much as it is a dent to the greenback, I don't see it being a sustainable one even though the market may ride this sentiment into month-end.
All of this still fits the bill of seeing the Fed acknowledging and communicating the start of a formal discussion on taper in September, officially announcing a taper in November, and beginning that process either in December or early next year.
Outside of Powell, other Fed policymakers have made their voices clear as of late and that keeps the above timeline on track for the time being.
EUR/USD is contesting some short-term resistance around 1.1800-05 while USD/JPY is sitting near support from its 100-day moving average, seen at 109.64.
Those will be among the key levels to be watching in the session ahead.
