Dollar Falls After Comments From Janet Yellen

Global markets mostly higher as Jackson Hole in focus

He also said he thinks the USA government will "end up probably terminating" the North American Free Trade Agreement with Canada and Mexico, though he also said he has yet to make up his mind. For the week, the Nikkei has fallen 0.3 percent so far, heading for a sixth straight weekly fall, the longest losing streak since January 2014 on a weekly basis.

President Donald Trump picked a new fight on Thursday with his fellow Republicans, saying congressional leaders could have avoided a "mess" over raising the US debt ceiling if they had taken his advice.

The euro jumped more than 1 percent and yields on benchmark USA government debt remained at unattractive rates on Friday after the world's two leading central bankers declined to discuss monetary policy in keynote speeches.

FED WATCH: Federal Reserve Chair Janet Yellen and other central bankers will assess the global economy at this week's annual conference in Jackson Hole, Wyoming.

"People are maybe anticipating something out of tomorrow's Jackson Hole speeches, but I'd be very surprised if anything happens". This morning we'll have the revised GDP data for Germany although, as mentioned earlier, the common currency is likely to remain stuck within a range during the London session ahead of today's Jackson Hole meet in the US. The dollar index, which measures the U.S. currency against a basket of peers, fell 0.5 per cent to 92.80 after the address.

CURRENCIES: The dollar rose to 109.37 yen from 109.04 yen.

Interest-rate sensitive sectors, such as telecommunications, up 0.8 percent, and utilities, up 0.3 percent, rose as Yellen's speech did not comment on the path of interest rate hikes for the US central bank, which sent US Treasury yields lower. Its main purchasing managers index, a broad gauge of economic activity, rose slightly to 55.8 in August from 55.7 in the previous month, better than expectations for a modest decline. USA data released this morning and was supportive as Core Durable Goods Orders came in slightly better than expected. The consumer sentiment index came in at 103 versus 104 in July. The greenback is seen finding support around 1.29 against the pound and 1.19 against the euro. However, orders for transportation equipment plunged 19%, weighing on the overall orders for durable goods. WTI was last trading at $47.84 a barrel and Brent crude was at $52.41. Financial markets have pushed back their expectations for the next hike in the USA until 2018, too far out in our view given the US's strong labour market and solid inflation.

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