Market Analysis: Forex, Commodities and Indices React To Jackson Hole Speeches
Markets seemed to be refrained Friday, in the wake of rising expectations of a hawkish twist to be delivered by the Fed Chair Yellen and ECB President Draghi at the Jackson Hole event. While the forecast of Hurricane Harvey directly affected Gold and Oil prices, Germany’s Q2 Growth figures confirmed the Economy expanded 0.6%. Global Equity Markets by the close of the London Session, continued their holding pattern ahead of the Jackson Hole speeches.
By the Wall Street Session Friday, while, the Dollar declined after Federal Reserve Chair Janet Yellen made no reference to US Monetary Policy in her speech, the Euro soared to its highest level in more than two years following European Central Bank President Mario Draghi’s speech. Both Central Bank heavyweights did not discuss the Economic Outlook nor the Monetary Policies of their respective economies.
Sterling rose however, following Yellen’s speech, Canadian Dollar strengthened and the Yen peaked to hit session high. A slower path of US Rate Hikes could drive up demand for safe heaven assets, benefiting currencies like Japanese Yen and Swiss Franc. FTSE100 edged higher, DAX closed flat and CAC edged lower. US Indices opened high but gave back gains by close of session. Dow Jones closed positive, so did S&P but Nasdaq retreated. Spot Gold advanced and so did Oil.
This week looks promising following the impact of Hurricane Harvey.
US Goods Trade Balance (Jul) 8:30 AM ET
Japan Household Spending (MoM) (Jul) 7:30 PM ET
Japan Jobs/ Application Ratio (Jul) 7:30 PM ET
While the Dollar declined, the Euro hit a high of $1.1940, its strongest level since January 2015.