Positive sentiment continues on Wednesday

By Peter Bukov|

Published: August 25 2021, 08:12 GMT+0

Positive sentiment continues on Wednesday


Today, the greenback was seen flat during the London session, but precious metals corrected their yesterday’s gains. Gold was down half a percent, back below 1,800 USD, while silver traded near 26.70 USD.

Markets are now getting ready for the annual Jackson Hole Symposium, starting Thursday, where central bankers meet and discuss their plans for monetary policy. 

Fed Chair Jerome Powell’s remarks on Friday will be carefully analyzed for any clues regarding the timing for the central bank’s tapering of asset purchases. Investors expect Powell to announce the central bank will start tapering its QE in November. 

The Nasdaq 100 and SP500 indices closed at new record highs yesterday, but the Asian session saw some profit-taking, and indices are trading flat during the London session.

Elsewhere, German IFO surveys came out weaker than expected, with the most important expectations gauge falling to 97.5 in August, down from 100 in July. 

European traders will also pay attention to Luis De Guindos’s speech, the Vice-president of the European Central Bank. As a result, the EURUSD pair might be volatile afterward. 

Later in the session, US durable goods orders data are due, and they should slow notably month-on-month, possibly boosting US stocks and weakening the USD. 

Source: https://www.axiory.com/market-news/positive-sentiment-continues-on-wednesday