The dollar was able to recover against its major counterparts. Greenback spiked near to a two-month high supported by strong U.S. labour market data and ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium.
The number of Americans filing new claims for unemployment benefits dropped last week, as labor market conditions remained tight despite the Fed’s aggressive interest rate hikes.
Bullions and Base metals gave up yesterday’s gains and settled in a red as the dollar and treasury yields moved higher ahead of a widely anticipated Friday speech from Federal Reserve chair Jerome Powell.
Crude oil remained under pressure as investors worried about the demand outlook ahead of a speech from U.S. Federal Reserve Chair Jerome Powell. Further, ongoing worries over China and mixed macro news in the U.S. not to mention worsening economic indicators out of Europe, in particular Germany, are weighing on prices
Gold Future had a volatile trade. After hitting a day’s low of 58662 and settling at 58811, down 0.01%. Silver futures settled at 73568, down by 0.59%. Crude oil at 6520 is down 0.53%, Copper is down 0.70% at 733.75, and the dollar index is up 0.57% at 103.9480.
Today, the Federal Reserve’s annual Economic Policy Symposium held in Jackson Hole meeting today will drive market sentiment. Several central bankers, finance ministers, academics and financial market experts from around the world attended the event. Comments and speeches from central bankers and other influential officials will cross the wires throughout the day, keeping volatility high.
Economic data released yesterday
Initial claims for state unemployment benefits decreased by 10,000 to a seasonally adjusted 230,000 for the week ended Aug. 19, the Labor Department said on Thursday. The level was increased by 1,000 claims from the prior week. 240,000 claims were predicted by economists surveyed by Reuters for the most recent week.
British Industry’s monthly balance of retail sales, which compares volumes with a year ago, fell to -44 in August from -25 in July.
Economic data and events scheduled today
Eurozone
At 11.30 pm – German Final GDP q/q. Data is foreseen at 0.0% unchanged from the previous.
At 1.30 PM – German Ifo Business Climate. Data is foreseen at 86.8 from the previous 87.30.
At 6.30 pm – Belgian NBB Business Climate. Data is foreseen at -13.5 from -14.80.
All the above data could have a neutral impact on the Euro.
U.S.
At 6.00pm-Revised UoM Consumer Sentiment. Data is foreseen at 71.2 from the previous 71.2.
At 7.35 pm – Fed Chair Powell Speaks.
At 8.30 pm – FOMC Member Harker Speaks.
At 9.00 pm- FOMC Member Harker Speaks
Day 2 – Jackson Hole Symposium.
At 10.00pm – FOMC Member Goolsbee Speaks.
At 10.30pm – FOMC Member Goolsbee Speaks.
All the above data could have a volatile impact on the dollar.