The U.S. dollar slipped on Friday trading against majors ahead of the release of GDP 2q report and on mounting speculations the Fed Chairman, Ben Bernanke, would announce a third round of stimulus in his speech at the annual central bank conference in Jackson Hole.
U.S. annualized growth data is predicted to show a downside revision to 1.1% from the initial 1.3%, adding to evidence the U.S. economy is slowing down and needs a boost by introducing QE3.
Later in the day, Bernanke is expected to announce a third round of stimulus which eroded demand on the dollar as further money printing means flooding more dollars into the financial markets. The expected decision by Bernanke has given some hopes since the beginning of the week, thereby enhancing demand on higher-yielding currencies.
The dollar index, which tracks the dollar movements versus a basket of major currencies, fell to low of 73.87 compared with the day's opening level of 74.22.
On the other hand, the yen showed advance after the Japanese Prime Minister mentioned he is quitting 14 months into the job.
Concerning the USD/JPY pair, it fell on the daily charts to trade around 76.93 after recording a high of 77.51 and a low of 76.89.
The trading range for today is among key support at 75.80 and key resistance now at 78.45.
Moreover, the euro showed advance against majors before the speech amid the absence of important fundamentals from the euro area, while the Swiss franc slipped after the drop in KOF leading indicator to 1.61 in August from 2.04.
Concerning the EUR/CHF pair, it rose slightly on the daily basis to trade around 1.1462, where it recorded a high of 1.1472 a low of 1.1393.
Moving to the British pound versus dollar, it rose to follow the general sentiment as the U.K. growth data which remained unrevised did not have much impact on the pair movements.
Meanwhile, the sterling is trading around 1.6310, where the day's high was recorded at 1.6340 while the low was seen at 1.6273.
The trading range for today is among key support at 1.6225 and key resistance at 1.6715.
All in all, eyes remain in the awaited speech from Bernanke as an introduction to a third round of non-standard measures may increase hopes that U.S. growth will show progress, thereby accelerating the sluggish global growth pace.