Jackson Hole Central Banks Meeting

Global investors are looking forward to a meeting between the world’s most powerful central bankers. Among them, Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi will deliver speeches on Friday at Jackson Hole Economic Policy Symposium. Any policy shift could have “ripple effects in the United States and impact the eurozone monetary policy.” Draghi is expected to give further sign of ECB’s growing confidence in the euro area economy and he may disappoint if he makes an announcement on the future of QE at its September meeting. Yellen will address the financial stability issue, which is entitled “Fostering a Dynamic Global Economy.”

source:Financial Times, wealthmanagement.com

Gold prices edged lower in Asian trade earlier on Thursday as investors geared up for central banks chiefs at Jackson Hole, Wyoming, over the next two days to discuss global monetary policies. Gold futures December delivery on the Comex division of the New York Mercantile Exchange fell by 0.12 percent to $1,293.20 a troy ounce. Traders remained cautions of initiating large positions ahead of speeches at the central banking symposium. The U.S. dollar rebounded in today’s early trade session as markets pay much attention to the start of the Wyoming meeting.

U.K. is all set to release its second quarter GDP at 08:30 GMT today and economists expect figures to rise by 0.3 percent quarter-on-quarter, whilst the year-on-year comparison figure is expected to increase by 1.7 percent. The U.S., on the other hand, releases its initial jobless claims and its existing home sales at 12:30 GMT and 14:00 GMT respectively. Overnight, Wall Street indices closed between 0.3 percent and 0.4 percent lower after President Donald Trump threatened to shut down the U.S. government and end the North American Free Trade Agreement.

Technical Analysis

JPN 225

JPN 225

The Japanese Nikkei 225 shed losses earlier yesterday and gained much volatility under pressure of the Wyoming meeting. Asian indices traded on a mixed note today ahead of the meeting of central bankers, and as such, the Nikkei 225 fell by 0.27 percent as it tumbled around 02:00 UTC. It could follow a bearish trend through today as it is seen trading below the Ichimoku Cloud indicator.

EUR/AUD

On Wednesday, the EUR/AUD pair gained strength in its morning trade around 10:00 UTC as it traded at the 1.49179 level to reach the 1.49626 level by 14:00 UTC. However, it started losing value later through the day. Today’s session is seen much volatile but it could exceed the 1.49500 level if it gains enough bullish candles in the upcoming hours. The Classic Binary Options can be used to trade this asset today.

EUR/GBP

EUR/GBP

In yesterday’s early trading session, the EUR/GBP pair traded with much volatility on the forex market. However, it rallied a bit during the day around 11:00 UTC to record momentary jumps and reached a record high at the 0.92340 level by 14:00 UTC Wednesday. Today, the asset opened its session on a bullish candle but it started consolidating in the next few hours. It could maintain this trend through today, use the 60 Seconds Trading.

Things to watch on the market

Tip 1

The much awaited Jackson Hole speeches could impact assets such as the EUR/USD, GBP/USD, USD/JPY, EUR/GBP, DAX, Nikkei 225, and the Dow Jones index.

 

Tip 2

Traders are recommended to trade on Gold futures and the Gold vs Silver pair as these commodities could be highly impacted on the market.

 

Tip 3

Consider trading on the EUR/GBP, FTSE MIB F-JUN16, Nasdaq and S&P 500 indices in regards to events scheduled today.