• The US dollar drifted higher early in the European trading day, following its best week in more than a month, with investors eagerly awaiting the Federal Reserve’s economic conference.
The dollar index, a measure of the buck against six developed-market currencies, climbed 0.07 per cent, adding to its 0.39 per cent advance last week.
• Because next weekend sees the annual economics symposium at Jackson Hole, Wyoming, at which the world's two most important central bankers - Janet Yellen of the US Federal Reserve and Mario Draghi of the European Central Bank - will both be speaking.
It has led some investors to speculate that the ECB may wind down its asset purchase programme, under which it is buying €60 billion worth of assets each month and which is not due to finish until the end of the year, early.
During a speech in June at Sintra, in Portugal, Mr Draghi delivered a speech that investors interpreted as a hint at this - sending the euro to its highest level against the dollar for more than a year.
The ECB, worried about sending the euro to levels where it would make Eurozone exports less competitive, have since sought to play down his remarks. It has indicated in recent days that Mr Draghi will not be giving any fresh clues on policy.
Yet that is not going to stop economists and traders following his speech closely.
Mark Wall, chief economist at Deutsche Bank, says: "The ECB Council has deliberately avoided setting expectations for the timing of a new decision on QE, let alone what that decision will be, and according to news wires Mr Draghi will respect that at Jackson Hole. [But] he could still make a throw away comment on the exchange rate."
In the case of Ms Yellen, the big question investors have is how optimistic she is about the US economic recovery, which will in turn provide clues on the speed and extent to which monetary policy will continue to tighten.
The Fed has already indicated that it will shortly begin unwinding the $4.5tn worth of asset purchases that it has accumulated under QE, with the expectation is that it will begin shrinking its balance sheet in September, while Mrs Yellen's speech will also be studied for hints on the timing of further interest rate rises.
Starting in December 2015, the Fed has raised interest rates four times since the financial crisis, including hikes in March and June this year. At least one more move is expected in 2017.
• Britain will not rule out the possibility that the European Union may retain oversight of customs controls at UK borders after it leaves the bloc, as the country seeks ways to keep unhindered access to EU markets following Brexit.
Last week, the UK published a policy document proposing two possible models for British-EU customs arrangements after withdrawal from the EU in 2019.
Under this model, the UK would operate as if it was still part of the bloc for customs purposes. British goods would be exported tariff-free and Britain would levy EU tariffs on goods coming into the UK for onward passage to the EU directly or as components in UK export goods.
• The Ulchi Freedom Guardian drills, which will run through Aug. 31, will be the first large-scale military exercise between the allies since North Korea successfully flight-tested two intercontinental ballistic missiles in July and threatened to bracket Guam with intermediate range ballistic missile fire earlier this month.
Despite some calls to postpone or drastically modify drills to ease the hostility on the Korean Peninsula, U.S. and South Korean military officials say that the long-scheduled exercises will go ahead as planned.
There's media speculation that the allies might try to keep this year's drills low-key by not dispatching long-range bombers and other U.S. strategic assets to the region. But that possibility worries some, who say it would send the wrong message to both North Korea and the South, where there are fears that the North's advancing nuclear capabilities may eventually undermine a decades-long alliance with the United States.
• Fewer U.S. soldiers will be participating in joint military drills with South Korean forces this year — a move Washington said isn't designed to pacify Pyongyang, but many analysts are skeptical.
Around 17,500 U.S. service members will be participating in the 10-day joint exercise, which began Monday, the U.S. Department of Defense said in a Friday statement. That's down from last year's 25,000 troops. Defense Secretary James Mattis said the downsized numbers reflected a need for fewer personnel and had nothing to do with recent heated rhetoric between President Donald Trump and North Korean leader Kim Jong Un, Reuters reported.
• Jackson Hole Symposium: From Thursday, (8/24) – Saturday, (8/26), central bankers, finance ministers, academics and other important finance people participate in the Jackson Hole Symposium, in Jackson Hole Wyoming. At the Symposium, we can expect speeches from Super Mario Draghi, Fed Chair Janet Yellen and many others from around the world. Comments from the central bankers can move markets. If they mention any change in policy or a time frame to the Fed unloading their balance sheet, or the ECB pulling back on its bond buying, we can expect a strengthening in the respective currency and a possible pull back in the broader markets
• Oil dipped on Monday, weighed down by rising U.S. output although a 13 percent fall in U.S. crude inventories since March indicated a gradually tightening market.
Brent crude futures, LCOc1 the international benchmark for oil prices, were at $52.64 per barrel at 0639 GMT, down 8 cents, or 0.2 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $48.47 a barrel, down 4 cents, or 0.1 percent.
Reference: FX Street,Reuters,CNBC
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