This is what you need to know to trade today Friday, August 27:
Investors are eager to hear from Fed Chairman Jerome Powell and his plans on reducing the central bank’s bond buying program and following upbeat comments from his colleagues and as the preferred inflation figure for the Bank. The terrorist attacks in Afghanistan continue to have an adverse impact. Gold and Bitcoin are off the lows.
adjust or adjust: Federal Reserve Chairman Jerome Powell will take the stage at the Jackson Hole virtual symposium and the fate of the $ 120 billion a month purchase program is in focus. The fact that the conference is being held online has reduced expectations of withdrawing the stimulus, but rising inflation and employment have shown that the economy is improving.
Powell is a dove and will probably wait for the bank meeting in September. The dollar has stabilized before the event, with the EUR/USD trading above 1.1750, the GBP/USD hovering around 1.37 and the USD/JPY holding on to 110.00.
See: President Powell’s Jackson Hole Speech: Precaution Will Triumph
The hawks awaken: Before Powell’s speech, his colleagues Esther George, James Bullard and Robert Kaplan have spoken in favor of reducing support for the economy. Kaplan appeared to reverse somewhat pessimistic comments he made last Friday.
Data: The gross domestic product GDP of the United States grew 6.6% annualized in the second quarter, slightly below estimates, but due to the fall in inventories. Unemployment claims met expectations. Just before Powell’s speech, investors will look at the release of the core PCE, the Fed’s preferred gauge of inflation. A small acceleration from 3.5% to 3.6% is anticipated.
See: US PCE Preview for July: Tapering Outlook Depends on Powell More Than Inflation Data
Afghanistan: Multiple explosions in Kabul killed about 60, including 12 US servicemen. The violence complicates evacuation efforts and could lead to increased American involvement, especially after President Joe Biden pledged to hunt down the terrorists. Markets fell on Thursday, but appear calmer on Friday. The clock is ticking toward the August 31 deadline to go out.
Cases of COVID-19 they continue to rise in the United States and stabilize in other areas. UK infections remain high and are having a negative impact on the pound.
Oil prices remain in high ground, with WTI crude hovering around $ 68, while oro has advanced to $ 1,800, recovering this psychologically significant level.
The cryptocurrencies have bounced off the lows. Bitcoin is trading around $ 47,000, Ethereum is above $ 3,100, and Cardano is around $ 2.55.
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