Markets are expecting that Fed’s Chair Yellen could hint on a rate hike in the near term during her speech at the Jackson Hole symposium today at GMT 14:00. A revised set of second-quarter UK GDP figures headline the economic calendar in the European hours. Expectations point to confirmation of preliminary data showing the economy added 0.6 percent in the three months through June.
Currencies: The EUR/USD is currently consolidating after declining as much as 66 pips in yesterday’s trading. This places resistance at the daily high of 1.1310, and support at the low of 1.1244. The Yen was unmoved against its major counterparts after Japan’s CPI report crossed the wires. National prices clocked in at -0.4 percent (YoY) in July versus -0.4 percent expected and -0.4 percent in June.
Stocks: European stocks opened slightly higher today as investors stay sidelined amid continued debate among Federal Reserve officials over the timing of a U.S. rate hike and ahead of a speech by the central bank’s chair Janet Yellen later today. Caution has dominated markets in the past few days with a lack of earnings and economic data to drive markets.
Oil and Gold: Crude oil prices rebounded above $47/barrel due to Iran considering to join the output freeze deal among OPEC. Gold prices were relatively flat this week with the precious metal up just 0.57% to trade at 1343 ahead of the New York close on Friday.