August 26, 2011
With the moment of truth for the U.S. only hours away, it looks like traders are placing their bets on the scrilla. The dollar gained against most of its high-yielding counterparts with EUR/USD slipping by 34 pips to 1.4386 and GBP/USD falling by 89 pips to 1.6291.
Was it because risk aversion was also felt in markets yesterday? After all, it was easier for investors to focus on the weak U.S. initial jobless claims report since it was one of the few market-moving reports released. The data showed an additional 5,000 claims from the previous reading, which brought up the initial claimants to 417,000 from its revised figure of 412,000.
Of course, we all know what markets are truly waiting for – the big Jackson Hole meeting today! At 2:00 pm GMT we’ll see the text of Fed Chairman Ben Bernanke’s keynote address to the Jackson Hole symposium. The speech will be watched closely not only because the Fed Chairman is speaking, but also because investors will be watching for any signs of additional economic stimulus. Recall that it was also this time around last year when Big Ben hinted at the Fed’s QE2 program.
Before you snooze in your charts ahead of Big Ben’s speech though, you might also want to trade the preliminary U.S. GDP report coming out at 12:30 pm GMT, followed by the revised figures of the University of Michigan’s consumer sentiment and inflation expectations at 1:55 pm GMT. Though most of the reports are expected to print a bit lower than their previous readings, significantly weaker numbers might send the dollar tumbling against the other safe havens ahead of Bernanke’s speech.
Good luck in your trades today, kids!
Last edited by PipDiddy; 08-25-2011 at 10:51 PM.
"The only cable I watch is the pound baby."