FX round-up: Jackson Hole in focus as UK data confirms sluggish growth

Meanwhile, data out from the ONS (Office for National Statistics) confirmed sluggish growth over the three months to June with a second estimate for GDP revealing that the economy expanded by 0.3%.

The US dollar index (a measure of dollar strength/weakness relative to a basket of six currencies) climbed 0.11% on the day to 93.246. Speaking about general dollar trades, Jane Foley at Rabobank said, "The market is short dollars already and from a risk-reward point of view, it makes sense to close some of those positions, just in case Yellen said something hawkish."

Janet Yellen, the current US Fed chairwoman, was due to deliver the introductory speech at 1500 BST on Friday.

GBP/USD continued its two-day consolidation between 1.2786/2843. The negative UK data out earlier in the session had little lasting effect with the pair relatively flat on the day at 1.2800 by 1730 BST

"Sterling has been impacted by a general decline in risk appetite while structurally, business sentiment and investment plans have been hit by the ongoing political uncertainty, with the services sector being hit the hardest," said Peter Chatwell, head of euro rates strategy at Mizuho International Plc.

Against the euro, sterling gained some ground as profit taking was seen on EUR/GBP with the pair trading 0.02% lower to 0.9223 and GBP/EUR higher to 1.0843. This could be due to traders keeping their powder dry ahead of ECB (European Central Bank) President Mario Draghi's speech, also due on Friday (at 2000 BST).

"We have been quite bearish about the British pound for some time and I think this trend is justified given its worsening fundamentals such as a widening current account deficit," said Thu Lan Nguyen, an FX strategist at Commerzbank AG.

EUR/USD was practically flat on the day, trading marginally lower by 0.04% to 1.1802.

Safe haven Japanese yen traded sideways for the entirety of the UK trading session, stuck in a 109.21/43 range, only able to muster a slight move higher on the day by 1720 BST to 109.31 while the Swiss franc gained marginally against the dollar for USD/CHF to close 0.03% lower to 0.9652.

So while all major currency pairs traded sideways on Thursday as Jackson Hole anticipation gripped the market, Friday was was likely to bring more volatility with it on the back of speeches from Janet Yellen and Mario Draghi.