U.S. Dollar Declines Ahead Of Bernanke's Speech

The U.S. dollar slipped against most major currencies in the European session on Friday as traders await speech by Federal Reserve Chairman Ben Bernanke later in the day.

Bernanke will talk about "Monetary Policy Since the Crisis" at the central bank's symposium in Jackson Hole, Wyoming.

Markets are focusing on whether Bernanke will signal any further monetary stimulus to boost the U.S. economy in the meeting. However, many traders scaled back expectations of any adequate hints on QE3 at this time.

The greenback declined to an 8-day low of 0.9547 against the franc and a 1-week low of 1.2582 against the euro and if the greenback falls further, it may break 0.95 and 1.27 levels, respectively. The greenback closed yesterday's American deals at 0.9605 against the Swiss currency and 1.2507 versus the euro.

Eurozone inflation accelerated to 2.6 percent in August from 2.4 percent in July, flash estimate issued by Eurostat showed. The rate was forecast to rise to 2.5 percent.

The seasonally adjusted jobless rate remained unchanged at a record 11.3 percent in July, the statistical office said in a separate report.

About 18 million people were unemployed in the euro area in July. Compared with June, the number of persons unemployed increased by 88,000.

Against the pound, the dollar is now quoted at 1.5832 and the next support level for the dollar is likely seen at 1.59. The pound-dollar pair ended Thursday's trading at 1.5787.

U.K. house prices declined at a slower pace in August, Nationwide Building Society said.

House prices dropped 0.7 percent annually, following a 2.6 percent drop in July. Economists had forecast prices to ease 2.2 percent from a year ago.

The U.S. currency also underperformed against the Australian and NZ dollars, falling to as low as 1.0333 and 0.8024, respectively. The next downside target for the greenback is seen at 1.04 against the aussie and 0.805 against the kiwi. At yesterday's close, the aussie-greenback and the kiwi-greenback pairs were quoted at 1.0291 and 0.7986, respectively.

Looking ahead, Canada second quarter GDP data, U.S. factory orders for July, Chicago PMI and the University of Michigan's consumer confidence survey results - both for August are due in the North American session.

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