The Jackson Hole Symposium
Last week, the DXY held at 92.30 before rebounding higher after some positive data releases and a dovish FOMC meeting minutes. Price still remains subdued beneath the 21EMA though trades firmer going into the week ahead. This week will see the focus turn to the Jackson Hole Symposium which is set to hold on Thursday and Friday where Central bankers, finance ministers and financial market participants will be in attendance. Investors and financiers will be eyeing the comments and speeches closely as FED Chair Powell is also set to discuss monetary policy.
Australia and New Zealand continue their battle against Covid-19 after Victoria’s State Premier announced that the state of emergency that was set to expire on the 13th September has now been extended for a year. In amongst this, rules and restrictions on facemasks, pubs and restaurants have been imposed. PM Arden also extended the Auckland level three lockdown to August 30th. In addition to this France experienced the largest number of reported cases since the initial peak as individuals begin to travel and attend summer gatherings. Officials are looking to curb and tighten measures to avoid a larger spread though they are cautious of reimposing a tight lockdown which could cripple the economy further.
GBP experienced a wave of volatility last week after cable whipsawed between 1.3100 and 1.3150. Currently the UK is under pressure given that no progress has been made on the trade talks with the EU and current reports suggest that PM Johnson’s government is being treated in a similar fashion to PM May’s where the deal being proposed focuses on tying Britain to EU rules. Cabinet Minister Gove is said to be spending majority of his time in preparation for a no-deal and with Covid-19 starting to spike across Europe, the UK is drawing up emergency plans to protect the nation from a second wave which could coincide with a no-deal Brexit. Talks over taxes caused a rift in the conservative party after a discussion was held over tax increases. This comes after the treasuries concerns for the rising debt levels continues to grow as the figure rose to more than £2tln.
WTI Crude continued to trade rangebound between $41.50 - $43/bbl, recent reports suggest that Nigeria are set to boost Bonny light and Forcados oil exports in October which was a contributor to the cautious price action. After its strong correction to $1,920/oz; Gold continues to trade sideways on a firmer USD. Last week saw price trade indecisively between $1,911 – 2,016 as the week finished with a strong Doji candlestick.
In the cryptocurrency space
In the cryptocurrency space, BTCUSD rejected the $12,450 level after sellers stepped in to push prices lower. At the time of writing, price is trading around $11,800 after holding at a 78.6% retracement level. Price currently holds above the 21EMA with resistance around $12,500. ETHUSD is trading cautiously around $400 after losing around 13% last week.
Here is a breakdown of the high impact data releases this week.
Day 1 Jackson Hole Symposium. Markets to watch: ALL
14:10 FED Chair Powell Speaks. Markets to watch: USD Crosses
16:15 BOC Gov Macklem Speaks. Markets to watch: CAD Crosses
Day 2 Jackson Hole Symposium. Markets to watch: ALL
14:05 BOE Gov Bailey Speaks. Markets to watch: GBP Crosses