Should We 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, U.S. currencies traded in a tight range against European currencies as U.S. Treasury yields fell slightly, with the GBP/USD pair trading within a range of 1.1784 to 1.1862.From a technical perspective, since the GBP/USD pair 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 real body candle and continue rising during European trading hours.
European currencies initially strengthened following yesterday’s release of the ECB Governing Council meeting minutes, but subsequently fell against the pound, with the euro/pound pair dropping approximately 40 pips from 0.8461 to 0.84823.The euro/pound pair is currently trading within a very narrow range, forming a range-bound market with no discernible pattern in how it sets new highs or lows. Therefore, it would be best to wait until a clear trend emerges before determining the direction of the market.
Today’s schedule includes the German GfK Consumer Confidence Survey at 15:00 Asia time, the French Consumer Confidence Index at 15:45, and—at 21:30 U.S. time—U.S. Personal Income, U.S. Personal Spending, the U.S. PCE Deflator, the U.S. Core PCE Deflator, and U.S. Wholesale Inventories,and at 23:00, the U.S. University of Michigan Consumer Sentiment Index (final reading) and remarks by Federal Reserve Chair Powell are scheduled. With the market currently in a summer lull, we will be watching carefully to see if remarks by key officials during U.S. trading hours will bring about any changes.
Author: Keisuke Sakurai
