Forex Today: Jackson Hole and US jobs in the limelight
The US Dollar (USD) has navigated an inconclusive range on Thursday, struggling to build on the previous day’s gains and briefly reaching multi-day peaks. In the meantime, geopolitical tensions have been simmering on the back burner, while investors have geared up for Friday’s US Nonfarm Payrolls revision and the speech by Fed's Warsh at Jackson Hole.
Here is what you need to know on Friday, August 28:
The US Dollar Index (DXY) has managed to maintain the weekly recovery in place, looking to extend the recent breakout above the 99.00 hurdle. The better tone in US Treasury yields and steady geopolitical uncertainty have also bolstered the uptick. Next on tap on the US docket will be the release of the Nonfarm Payrolls Annual Revision, the final U-Mich Consumer Sentiment gauge and the speech by Chair Warsh at the Jackson Hole Symposium.
EUR/USD has extended its weekly downtrend, at some point flirting with its key 200-day SMA, although it managed to attempt some recovery past 1.1650 afterward. Closer to home, Germany’s labour market report should gather all the attention alongside the final prints of the Consumer Confidence in Euroland and the speech by the ECB’s Schnabel.
GBP/USD has slipped back to fresh multi-day lows, challenging 1.3570 prior to recovering ground and reclaiming the 1.3600 region. The next event across the Channel will be the release of the Nationwide Housing Prices.
USD/JPY further extended its weekly recovery, up for the fourth day in a row and revisiting the 159.50 zone. The Unemployment Rate, Consumer Confidence, Housing Starts, Construction Orders and inflation figures in Tokyo will be on top of the agenda in the 'Land of the Rising Sun.'
AUD/USD has remained well bid and approached 0.7200, the figure to challenge three-month highs. Data-wise in Oz, quarterly Business Inventories figures, Housing Credit and Private Sector Credit data are next on tap on August 31.
Prices of WTI added to Wednesday’s recovery and surpassed the $83.00 mark per barrel, always closely following developments surrounding the Middle East crisis.
Gold has built on Wednesday’s losses, trading closer to the $4,560 mark per troy ounce, or four-day lows. The precious metal’s decline has followed the US Dollar’s vacillating price action, higher US Treasury yields and steady caution pre-Jackson Hole event.