What you need to know on Friday, August 27:
The dollar ended the day with modest gains against most major rivals. Geopolitical tensions in Afghanistan and comments from the Fed’s Robert Kaplan, who said September would be the time to outline the cut and start in October, were behind the drop. James Bullard, another member of the central bank, also made comments in the same direction.
Comments from Fed officials fueled speculation about an announcement by US Federal Reserve chief Jerome Powell at the Jackson Hole Symposium on Friday. Powell will likely refrain from anticipating a change in monetary policy, but will instead reserve any announcements for the next Fed meeting in September. Market participants, however, hold high expectations before his speech.
The US released the second version of the second quarter Gross Domestic Product, which was revised up to 6.6% QoQ from the previous estimate of 6.5%, without reaching the 6.7% expected. Core inflation for the PCE in the same quarter was confirmed at 6.1%, as previously estimated.
The EUR was among the strongest rivals of the USD, while the GBP was the weakest. EUR / USD is trading around 1.1750, while GBP / USD crossed the 1.3700 figure. Commodity-linked currencies fell on the day, but retain most of their weekly gains. The USD / JPY pair hovered directionlessly around 110.00.
Gold prices ranged between gains and losses, but ended the day little changed at around $ 1,792 a troy ounce. Crude oil prices were also stable and the WTI settled at $ 67.80 a barrel.
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