Europe is expected to launch with slight increases, but cautiously. This is also evidenced by early indications of major European futures that remain in green territory for the time being. The Asian session ended mixed because of Powell’s expected speech and the escalation of relations between Japan and South Korea. Investors are beginning to take strategic positions before the start of the much-anticipated event today – the Jackson Hole Symposium. It still has an unspecified hour, but Powell’s speech will be at 17:00 Bulgarian time.
The smart money is more of a conservative attitude, with overall expectations for a disappointing speech by Jerome Powell. Before the start of European trade, we have a relatively strong dollar, weak gold and the franc, and the indices are slightly up, but rather mixed. The euro in the morning has seen a decline in the background of the slightly appreciating dollar. Oil starts the new day with decreases. On the calendar today, in addition to the event today, we also expect data on sales of new homes in the US, and from Canada retail sales. Canadian data would shed more light on the next BOC move. During the state session, we are expecting the Foot Locker reports.
But as I mentioned, the main action will be around the event. Until then, we expect markets to remain relatively calm, with minimal movement, almost in a state of lethargy. As an exception, we will expect market disturbances and sharp, short movements in both directions as the event approaches, but immediate normalization of flat movements as market players position themselves.
Trader Martin Nikolov