G10 Currencies Tread Water Ahead of Jackson Hole

The G10 currencies are trading range-bound ahead of Jackson Hole as key events unfold. The Canadian dollar has fallen about 0.65% on the week due to an intensifying US-Canada trade dispute, while the Australian dollar rose around 0.40% with expectations of another Reserve Bank of Australia hike potentially as soon as next month.

The yen slipped almost 0.5% despite stronger Tokyo CPI and a lower jobless rate, with the US dollar reaching JPY159.70 in Europe versus last week's post-intervention high near JPY159.80.

According to swaps markets, there's an 85% chance of a Bank of Japan rate hike next month, forcing a sharp unwinding of the carry trade.