Brief–
- Investors adopt cautiousness amid Jackson Hole Symposium.
- GBP/USD and EUR/USD are attempting to rebound.
- Continued WTI oil pullbacks might see USD/CAD jumping beyond 1.2950.
US GDP Growth Rate Exceeds Expectations
US Dollar Index loses some ground following the release of the Q2 GDP Growth Rate second prediction report. The updates showed that the US GDP dropped 0.6% Q/Q (quarter-over-quarter), compared to the predicted 0.8% drop.
Initial Jobless Claims data highlighted that 243K Americans applied for unemployment benefits per week, whereas analyst consensus stood at 253K. The job market remains steady, translating to a bullish move for the United States dollar.
Investors will concentrate on the Jackson Hole Economic Symposium. Should we be ready for market-moving comments today? Meanwhile, tomorrow’s markets will likely respond to Fed Chair (Jerome Powell) speech.
EUR/USD Attempts to Steady Beyond 1.0000
EUR-USD tried to settle beyond the 1.0000 mark after Germany reported better-than-anticipated economic results. The final report from Germany’s Q2 GDP Growth Rate suggested that GDP gained 0.1%, surpassing the 0.0% analyst consensus.
Ifo Business Climate slumped to August’s 88.5 from July’s 88.7, compared to 86.8 analyst consensus. EUR-USD has (already) recorded multiple attempts to steady beyond 1.000 during the latest trading sessions. However, it could not initiate enough upward momentum, leading to failure.
Meanwhile, settling beneath this crucial market might see the pair sliding towards its latest lows at around 0.9900. Furthermore, GBP-USD is attempting a rebound. However, its outcome will rely on Jackson Hole’s comments as the pound lacks massive positive triggers.
Commodity-Linked Currencies See Some Ground Against USD
NZD/USD and AUD/USD surged as market players responded to optimistic developments in most commodity markets. Nevertheless, the latest WTI oil pullback restricted upside action by the commodity-linked currencies.
USD/CAD stayed beneath 1.2950 and tried to settle beneath 1.2900. nevertheless, the latest developments within the oil markets pressured the Canadian dollar. Continued WTI oil downside might see USD-CAD climbing above 1.2950 again.
USD/JPY Close to 137
USD/JPY loses some ground as traders await commentary from Jackson Hole Economic Symposium. Meanwhile, the yen surrendered its safe-haven position this year because of BoJ’s dovishness. Therefore, bulls will require impressive catalysts to propel the yen higher.