Yesterday, we saw a mild rebound with the USD against other major currencies. Overall the US dollar is moving in a range and all investors are awaiting the Fed Chairman Yellen’s speech tomorrow. While the Jackson Hole Economic Symposium, beginning today at 1400GMT, will likely dominate the headlines as a ‘who’s who’ of Global Central Bankers gather in Wyoming. Markets will stay cautious ahead of the event. Today, German IFO Business climate will release at GMT 08:00, durable goods orders and Unemployment claims will release during US session later today.
Currencies: The USD rose against a basket of major currencies ahead of a gathering of global central bankers tomorrow in Jackson Hole, Wyoming where the focus will be on Friday’s keynote speech by Federal Reserve Chair Janet Yellen. The commodity-linked Canadian dollar weakened against the USD on Wednesday as oil fell, although losses for the currency were limited as investors are awaiting clues tomorrow on the U.S. interest rate outlook.
Stocks: The Dow Jones Industrial Average declined 65.82 points, or 0.4%, to 18481.48 Wednesday. The S&P 500 fell 11.46 points, or 0.5%, to 2175.44 and the Nasdaq Composite dropped 42.38 points, or 0.8%, to 5217.69. The pullback in U.S. stocks comes a day after major stock indexes flirted with all-time highs. The S&P 500 has hit new records 11 times since early July.
Oil and Gold: Crude oil price resumed the descent after the weekly inventory data showed a 2.5 million barrels increase. Crude Oil prices are now testing support at $46.87. Gold rose slightly on Thursday after hitting a four-week low in the previous session, with the dollar losing strength ahead of a speech Yellen’s speech. Spot gold was up 0.2 percent at $1,326.22 an ounce.