Should investors be wary of volatility during the Jackson Hole Symposium?
26.08.2022
- U.S. PCE Deflator
- Remarks by U.S. Federal Reserve Chair Powell
In the previous session, the U.S. dollar traded in a tight range against European currencies as U.S. Treasury yields edged lower, with GBP/USD fluctuating within a range of 1.1784 to 1.1862. From a technical perspective, since GBP/USD has been gradually forming higher lows on the 4-hour chart, we need to carefully assess whether it will break above the recent high of 1.1877 with a solid candle during European trading hours.
Although European currencies strengthened temporarily following yesterday’s release of the ECB meeting minutes, they subsequently fell against the pound, with the EUR/GBP pair dropping approximately 40 pips from 0.8461 to 0.84823. The EUR/GBP pair is currently trading within a very narrow range, forming a range-bound market with no discernible pattern in terms of new highs or lows. Therefore, it would be prudent to wait until a clear trend emerges before determining the direction of the market.
Today, the German GfK Consumer Confidence Survey is scheduled for 3:00 PM Asia time, followed by the French Consumer Confidence Index at 3:45 PM. During U.S. trading hours, at 9:30 PM, the U.S. Personal Income, Personal Spending, PCE Deflator, Core PCE Deflator, and Wholesale Inventories are set to be released,and at 11:00 PM (U.S. time), the University of Michigan Consumer Sentiment Index (final reading) and remarks by Fed Chair Powell are scheduled. With the market currently in a summer lull, we will be watching closely to see if remarks by key figures during U.S. trading hours will bring about any changes.
Author: Keisuke Sakurai
