If there was quiet in the international currency markets late last week, there is deafening silence Monday. The market responded only briefly to chairman of the Federal Reserve Ben Bernanke's speech on the financial summit in Jackson Hole on Friday night.
The movements were small and were quickly neutralized before the market was ready for a long weekend in the U.S., which will be closed on Monday for the traditional Labor Day.
Euro, Yen and Dollar are kept in very short leash by investors Monday and each movement is so small that they can hardly be called movements. Everyone looks forward to this week's overriding focus - the ECB's monetary policy meeting Thursday.
It is generally expected the Central Bank will reduce interest rates by 0.25 percentage points to 0.50 per cent. But especially comments from Governor Mario Draghi will come under the spotlight because it is the ECB's first official meeting after Draghi in august assured markets that the ECB will do whatever it takes to save the euro.
Euro costs $ 1.2575 Monday afternoon and all day traded between $ 1.2560 and $ 1.2580. Corresponding Euro costs 98.50 yen after trading between 98.35 yen and 98.55 yen.
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