The investors and traders cautiously await comments from the U.S. Federal Reserve Chairman Jerome Powell, he scheduled to deliver a speech reviewing the central bank’s monetary policy framework at the virtual Jackson Hole Economic summit today. Due to coronavirus pandemic this year’s Jackson Hole economic policy symposium to be held online on 27 and 28 August.
US stock futures and European shares trading lower ahead of the Fed Chair speech on the annual Jackson Hole Symposium later in the day, the negative sentiment was also hurt by news rising tensions between the US and China. On Wednesday, Wall Street ended higher with the S&P 500 and Nasdaq benchmarks climbed to fresh records on upbeat corporate results.
Crude Oil prices trading steady on Thursday after the EIA reported a bigger-than-expected draw in US crude oil inventories. The data showed the crude oil stocks change was -4.7 million barrels in the week ending August 21st, compared to analysts’ estimate of -3.7 million barrels.
In the currency market, the dollar index extends lower ahead of speech from the US Federal Reserve Chairman Jerome Powell at the Economic Symposium.
Gold price slightly retreated from the previous session highs. The gold investors waiting for the US GDP report for the second quarter of 2020 and a highly anticipated speech by Federal Reserve chair Jerome Powell.
On the US-China front, the tensions are building up again after China fired missiles in the South China Sea even as the US imposed sanctions on Chinese companies with links to this region.
On the data front, new orders for the US manufactured durable goods rose by 11.2% in July 2020, easily beating market expectations of 4.3%.
Moving ahead today, the important events to watch:
US GDP – 12.30 GMT
US Jobless claims – 12.30 GMT
US Federal Reserve Chair Jerome Powell speech– 13.10 GMT
The number of people infected with the coronavirus across the world surpassed 24.1 million, of which at least 825 thousand people have died and 15.7 million have recovered, according to data released by the Johns Hopkins University. The U.S. has suffered the most from the pandemic, 5,807,480 cases and 179,235 fatalities, followed by Brazil with 3,669,995 cases and 116,580 deaths. India confirmed more than 3.2 million cases.
XAU/USD: The gold price trading above $1940 during the European session, on Wednesday the yellow metal slipped to fresh weekly low of $1902 before it climbed back to $1950.
The important levels to watch for today: Support- 1926 and 1910 Resistance- 1965 and 1980.
GBP/USD: The currency pair slightly retreated from the daily highs, at the time of writing the pair hovers near the 1.3200.
The important levels to watch for today: Support- 1.3180 and 1.3140 Resistance- 1.3230 and 1.3270.
Quote of the day: The difference between successful people and successful people is that really successful people say no to almost everything- Warren Buffet.
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