It’s the First Day of the Jackson Hole Symposium – What should traders expect?

The U.S. dollar gave up intraday gains against a basket of currencies. The currency saw pressure after data showed U.S. business activity approached the stagnation point in August, with growth at its weakest since February as demand for new business in the vast service sector contracted.

Bullions and Base metals extended their gains for the second day following the weakness in the dollar index.  

Crude oil extended its fall for a second consecutive day as demand woes stemming from a build in U.S. gasoline stocks and weak manufacturing data globally outweighed optimism around a larger-than-expected drop in U.S. crude stocks.

U.S. gasoline stocks climbed 1.5 million barrels last week, compared with estimates for an 888,000 barrel drop.

Meanwhile, U.S. crude inventories fell by 6.1 million barrels in the week to Aug. 18, the Energy Information Administration said, helped by strong refining activity and high levels of exports. Analysts had expected a 2.8-million-barrel drop. [EIA/S]

Gold Future settled at 58815, up 0.42%. Silver futures settled at 74006, up 2.82%. Crude oil is at 6564 down 1.14%, Copper gained 0.76% at 738.70, the dollar index is down 0.25% at 103.3450.

Today will be the first day of the Fed’s annual economic conference, spanning into the weekend. The event attracts a large number of central bankers, finance ministers, academics, and financial market specialists from around the world. The day will be filled with central bankers and other key individuals’ remarks and speeches, which will keep volatility high.

Economic data released yesterday

U.S., New home sales shot up 4.4% to a seasonally adjusted annual rate of 714,000 units last month, the Commerce Department said on Wednesday. The sales pace in June was revised to 684,000 units from the previously reported 697,000 units.

Canadian June retail sales grew by 0.1% from the previous month driven mostly by car sales, data showed on Wednesday.

Euro zone consumer confidence fell by 0.9 points in August from the July number, figures released on Wednesday showed. The European Commission said a flash estimate showed euro zone consumer morale decreased to -16.0 this month from -15.1 in July.

Economic data and events scheduled today


At 3.30 pm – CBI Realized Sales. Data is foreseen at -14.00 from the previous -25.00.

Above data could have a negative impact on the pound.


At 6.00pm-Corporate Profits q/q. Previous was at – 5.6%.

Above data could have a neutral impact on the dollar.


At 6.00pm-

Unemployment Claims. Data is foreseen at 239K from previous 239K

Core Durable Goods Orders m/m. Data is foreseen at 0.2% from the previous 0.5%.

Durable Goods Orders m/m. Data is foreseen at -4.1% from 4.6%.

At 8.00pm – Natural gas storage. Data is foreseen at 36B from 35B.

At 9.30pm – FOMC Member Harker Speaks.

Jackson Hole Symposium

Above data could have a volatile impact on the dollar.