Investors Expect the Fed’s Chairman Speech

The US dollar has moved away from local highs against a basket of major currencies. US President Donald Trump has criticized the Fed's actions on Twitter again. The President believes that the Fed does not provide adequate support to the US economy. Meanwhile, Kansas City Federal Reserve President, Esther George, said that the Fed aimed to promote maximum employment and price stability. That is why the regulator does not intend to reduce the interest rate sharply. Investors expect a speech by Fed’s Chairman, Jerome Powell, at the Jackson Hole Summit to be held today. The US dollar index (#DX) closed the trading session in the negative zone (-0.12%).

Quite optimistic economic data from the Eurozone and the US were published yesterday. Thus, German services PMI rose to 43.6 in August instead of 43.0. Manufacturing PMI in the Eurozone also grew by 47.0 in August, although experts forecasted 46.3. Initial jobless claims in the US fell to 209K instead of 216K. Today, we expect economic data from Canada and the US.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are testing the $55.30 mark per barrel.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (-0.03%), #DIA (+ 0.20%), #QQQ (-0.32%).

The 10-year US government bonds yield has been recovering. At the moment, the indicator is at the level of 1.65-1.66%.

- Report on retail sales in Canada at 15:30 (GMT+3:00);
- New home sales in the US at 17:00 (GMT+3:00).

At 17:00 (GMT+3:00), the Fed's Chairman will speak at the Jackson Hole Symposium.

by JustMarkets, 2019.08.23

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.