All Eyes on Jackson Hole: Will the Fed Chair Drop a Bombshell?


All Eyes on Jackson Hole: Will the Fed Chair Drop a Bombshell?

The dollar rebounded from a 13-month low against the euro on Thursday before Federal Reserve Chair Jerome Powell is due to speak on Friday and as the greenback’s recent weakness was seen as being overdone. Fed Chair Speaks in Jackson Hole will a decisive event today

The U.S. currency has fallen on concerns about a weakening economy and on expectations the Federal Reserve is close to cutting interest rates. But the extent of the weakness, and whether it will lead the U.S. central bank to cut rates by 25 or 50 basis points at its September meeting, remains in question.

GBP/USD remained near Tuesday’s 2024 high at 1.3054, while the euro is trading at its highest this year against the dollar, emerging as a clear winner from the recent ructions in global currency markets that have unsettled a strong dollar and halted a relentless slide in Japan’s yen.

Crude oil jumped over two percent after a four-day decline, which had pushed prices to their lowest since January. The rise came despite lingering concerns about a US economic slowdown and a bleak outlook for 2025, masking a surge from falling oil supplies.

Gold drop nearly one percent, weighed down by a stronger dollar and rising government yields as investors held on to chance to keep profits from recent record highs The dollar index rose 0.5% after U.S. jobless claims fell short of expectations, and output rose Fund 10 years.

Commodity Closing on MCX

MCX gold futures settled -0.89% to 71,194. Silver settled -1.33% to 83,736. Copper settled -1.27% to 793.95. Crude oil +2.12% at 6,158. Natural gas -4.64%. to 172.8.

Major Economic Data and Event scheduled today. Fed Chair Speaks in Jackson Hole

Major Economic Data and Event scheduled today

Japan

 At 5.00am

National Core CPI y/y. Data is foreseen at 2.7% from the previous 2.6%.

Above data could have a mixed impact on the Yen.

Eurozone

Do not have any major data.

UK

At 8.30pm- BOE Gov Bailey Speaks.

Could have a volatile impact on the pound.

Canada

At 6.00pm

Core Retail Sales m/m. Data is foreseen at -0.2% from the previous -1.3%.

Retail Sales m/m. Data is foreseen at -0.3% from previous -0.8%.

Corporate Profits q/q.Previous was 0.6%.

Above data could have a volatile impact on the dollar.

 US

At 7.30pm-

Fed Chair Powell Speaks.

New Home Sales. Data is foreseen at 624k from the previous 617k.

Flash Services PMI. Data is foreseen at 54.00 from previous 55.00

Day 2- Jackson Hole Symposium

Above data and event could have a volatile impact on the dollar.

Happy Trading!
Commodity Samachar
Learn and Trade with Ease

Also Read: Gold Prices Dilemma: Is a Major Breakthrough on the Horizon? NIFTY’s Tightrope Walk: Will it Break or Bounce?

Recommended Read: MCX Commodities Uncovered: The Must-Knows and Essential Insights [2024]

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