Here again, we have the daily Forex news and trade opportunities. The sterling was one of the major movers yesterday while gold and silver fell sharply, breaking out of their range.
25 August, AtoZForex – For today, all eyes on the dollar as we have the Core Durable Goods Orders m/m and unemployment claims data due for release.
#1 Dallas Fed Kaplan “Employment is the key for rate hike”
Mr. Kaplan believes that rate hike will take place if the jobs tendency continues. Being asked about the current state of the US economy, Mr. Kaplan was very optimistic, saying that the main point on the US economy is belief in that the consumer strong tendency will continue in 2016. He says that the fundamentals for the consumer strong consumer spending in the US remain high, as employment market and household balance sheet are showing good signals.
#2 Brexit effect already existing?
The 11 percent dip in the value of the pound since the June 23 Brexit vote is already pushing up the price of imports and some economists forecast that inflation will accelerate above 3 percent next year, therefore negatively impact the spending power of British households. However, businesses may already be feeling the Brexit effect, with economists predicting firms cut back spending last quarter.
#3 Merkel goes soft on Brexit talks
Commencing a three-day talk with fellow European leaders, the German chancellor said she “can allow the time” for the U.K. to decide what it wants from the European Union in Brexit talks. This is based on the fact that Merkel suggests there’s no advantage in pressuring Prime Minister Theresa May’s government for now because the EU can’t negotiate new relations until the U.K. government’s position is clear.
#4 Dollar rally calms as markets await Yellen
Ahead of a Friday’s speech by Federal Reserve Chair Janet Yellen at the Jackson hole symposium, markets have called as all eyes turn to Yellen. The dollar posted a four-day winning streak due to upbeat tone from Fed members regarding the commencement of rate hikes. Now markets seek clues fro Yellen regarding the timing of the long-awaited rate hikes.
Opportunity: Buy GBPUSD on hawkish tone
#5 Gold dips ahead of Jackson hole
Gold prices have been consolidating for the past few weeks. However, the yellow metal ended the day at a one-month low as all eyes turn to the dollar on expectations of a hawkish delivery from Yellen during the Jackson hole symposium.
Opportunity: Sell gold on rallies
#6 Oil falls on increased stockpiles
Oil prices fell further on Wednesday after the U.S. Energy Information Administration reported showed that domestic crude supplies increased by 2.5 million barrels in the week ended Aug. 19.
#7 German Ifo Business Climate
The German Ifo Business Climate is forecast to show 108.5 reading, depicting firm business confidence. The Brexit contagion still seems subdued as the latest economic data has not depicted any serious effects and business confidence readings have remained quite high.
Opportunity: Sell EURUSD on disappointing data
#8 US Core Durable Goods Orders m/m
The change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items is forecast for a jump from -0.4% last month to 0.4% this month. The dollar remains mixed ahead of Yellen’s speech tomorrow, so the effect of this data is likely to be shortlived.
#9 6.2 Magnitude Earthquake in Italy
To conclude the daily Forex News and trade opportunities, a strong 6.2 magnitude earthquake in Italy left terrified residents with collapsed buildings and many trapped beneath the rubble. According to the Italian media a 6.2 magnitude earthquake hit central part of Italy on Wednesday at around 3:36 am local time. The Euro dipped against the USD following the disaster, while Milano Stock Features opened with a 0.6% bearish Gap which has now almost closed.
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