In last week’s Jackson Hole Symposium, Federal Reserve Chair Powell’s speech hinted at the possibility of additional rate hikes, but it was emphasized that future actions would depend on incoming data. The content was in line with market expectations in terms of hawkishness, leading to fluctuations in the US stock market but ultimately closing in positive territory. As the new week starts, market risk concerns seem to have been temporarily set aside. With the gradual establishment of the trend of slowing US inflation, there’s a sense of reassurance that even if additional rate hikes occur, their impact might remain modest.
Today, London traders are returning to the market, and trading in the EUR/GBP pair is expected to become more active during the European session. Currently, there’s a slight selling pressure on the Euro and buying pressure on the Pound. In the broader context of the USD, there’s a prevailing tendency for the Dollar to weaken. However, London traders might introduce speculative position adjustments, so one should remain cautious about short-term directional shifts.
In the latter half of the week, focus will be on key US data such as the PCE Deflator and the US Employment Report. This could lead to a flow-driven market dynamic as the month comes to an end. Since Powell’s speech didn’t decisively shape the market’s direction, the market might remain even more chaotic.
Later today, overseas markets will release economic indicators including Mexico’s Real GDP (Q2 2023), Hungary’s central bank policy rate (August), US Home Price Index (June), US S&P Case-Shiller Home Prices (20 cities) (June), US JOLTS Job Openings (July), and US Conference Board Consumer Confidence Index (August). The JOLTS Job Openings report, which has garnered increased market attention recently, is expected to show a slight decrease from the previous 9.582 million to around 9.5 million.
Today’s focus is on the US July JOLTS Job Openings report. Keep an eye on its impact on the USD’s movement going forward.
