The dollar has strengthened against the euro this morning after previously being weighed down by an increasingly positive market mood, particularly after the FDA fully approved the Pfizer vaccine.
There is still uncertainty over whether or not the Federal Reserve will announce plans to taper its quantitative easing measure at the annual Jackson Hole symposium on Friday. Any mention of a delay to this tapering could push the dollar lower.
As well as Jackson Hole, other factors that could affect the dollar are the September FOMC meeting and jobs data at the start of the month.
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