The bulls were at the top of the financial markets last week, with stock markets rising around the world. On top Wall Street, Nasdaq Composite, S&P 500 and Dow Jones grew by about 2.8%, 1.5% and 0.9%, respectively. In Europe, FTSE 100 and Euro Stoxx 50 increased by 0.85% and 1.05%, respectively. In the Asia-Pacific region, Japan’s Nikkei 225 by the end of the week rose 2.32%.
All eyes were on the Jackson Hole Economic Policy Symposium of the Federal Reserve. There it seemed that the central bank disappointed those looking for clearer tapered timeline tips. Although Chair Jerome Powell said it might be appropriate to start the process this year, he was concerned about the labor market, where much needs to be covered to achieve maximum employment.
Interest rates on government securities weakened while hedging instruments were ineffective US dollar and behave similarly Japanese yen. Emotional Australian and New Zealand dollars mostly outperformed their G10 counterparts. However, the ten-year rate remains higher than where it began last week, likely reflecting global growth optimism as the Pfizer vaccine was granted full FDA approval in the United States.
The weakness of the US dollar and the improving market sentiment pushed up commodity prices. WTI crude oil price rose by almost 11% in the best week since June 2020. Gold increased by about 2%. DCE iron ore and LME copper futures rose by around 8.3% and 4.5% respectively. Will this joyful dynamic continue in September?
All eyes are on US non-farm wages in August. The state can add 750,000 positions. Looking at Citi’s index of economic surprises, US data still tends to disappoint expectations. Given the Fed’s close monitoring of the labor market, softer printing could further reduce the stakes on the timeline. China publishes production PMI, Australia upgrades GDP and oil prices await new OPEC + meeting. What else can the markets expect next week?
US DOLLAR WEEK RESULT AGAINST VALUES AND GOLD
The printing of data collected in the US in early September is likely to affect the dollar, as the Federal Reserve maintains an approach based on monetary policy results.
Gold rose for the weekend after Fed chairman Powell did not send a clear signal of austerity. XAU traders will shift the focus to next week’s non-farm payrolls as geopolitical risks remain.
Powell-inspired elevator EUR / USD, looking at key US data.
Bitcoin draws strength from a simple moving average of 200 days, and if it continues, higher prices may be seen in the near future.
The Pound Sterling has few signs of direction preferences that are likely to persist when Powell reads a similar script on Friday in Wyoming.
The downsizing tone of the Federal Reserve at the Jackson Hole Symposium is likely to lower US Treasury interest rates and consider USD / MXN in the near future as traders seek to take advantage of higher EMFX returns.
Oil, GameStop (GME) prices remain high as markets await Jerome Powell’s appearance at Jackson Hole
The Australian dollar has risen, but the way forward is likely to depend on commodity prices, yield differentials and risk appetite.
Technical stocks expanded beyond record territory, although Fed chairman Jerome Powell prepared markets to narrow Fed. Rising interest rates are likely to be far off, easing pressure on risky assets.
The US dollar fell more than 0.8% after returning from this week’s key obstacle – risk deepens USD correction? Levels that are important on the DXY weekly chart.
Equities are well supported in the short term as redemptions provide a new impetus to rise
The AUD / USD the schedule is still lower, but it will be put to the test; levels and lines to look at in the coming days …
Short dollar drop sent GBP / USD higher, but the couple seems ready to continue side grinding next week
WTI crude oil prices saw the best week since June 2020, but commodities are falling below the declining channel.
Canadian dollar strengthened due to rising oil prices and the weakening of the US dollar