Asian session review: the US dollar traded in a narrow range

The US dollar traded in a narrow range against the euro. On friday comments by Fed's Janet Yellen caused choppy conditions but eur/usd was traded lower. She did not specify exactly when the rates may be increased, in September or in December, but noted that the grounds for increasing rates increased.

Yellen said that against the backdrop of continuing positive momentum in the labor market and the outlook for economic activity and inflation, the arguments in favor of raising interest rates have increased in recent months. The decision on raising rates, as before, will depend on the extent to which the incoming statistical data confirm this forecast, stressed Yellen.

Other Fed officials also support the rate hike, although, like Yellen, they did not give predictions on the timing of further policy tightening. The next Fed meeting will be held on September 20-21. Some analysts believe that rates will be raised at this meeting.

As reported today by Bloomberg, the probability of a rate hike at the September meeting rose to 42% from 22% a week ago, and the probability of a rate hike at the December meeting rose to 65%.

During today's Asian session, the yen continued to decline after the Bank of Japan's head Haruhiko Kuroda, said that the Bank of Japan will act "without hesitation" to revive inflation.

"The Bank of Japan will continue to closely study the risks and take additional easing measures without hesitation"

The Australian dollar fell against the background of the widespread increase in the US dollar and, to some extent, on the negative data on new home sales. Sales of new homes published by the Association of the housing industry, fell by -9.7% in July, after rising 8.2% in June. This indicator expresses the volume of new home sales in Australia and assesses conditions in the housing market.

EUR / USD: during the Asian session, the pair was trading in 1.1190-1.1210 range.

GBP / USD: during the Asian session, the pair was trading in the $ 1.3110-40 range.

USD / JPY: during the Asian session, the pair was trading in Y101.80-102.40 range.