EU Morning Report
All eyes at Bernanke's Jackson Hole speech
- The US dollar is under pressure today against its major counterparts ahead of Ben Bernanke's Jackson Hole speech today at 14:00 GMT. Investors are wondering whether the Federal Reserve Chairman will announce further monetary stimulus. Focus also turns to the US Gross Domestic Product in the second quarter released at 12:30 GMT, which is expected to provide a clearer picture on the US economy. Against the Japanese yen, the dollar edged lower today falling to 77.14 today from a two-week high at 77.69. Today, news reported that Japanese Prime Minister Naoto Kan has formally resigned.
- The euro edged higher against the dollar yesterday on news that Berkshire Hathaway would 5 billion dollars in the Bank of America but the impact was short-lived and the pair sharply dipped to 1.4328. Versus the Swiss franc, the single currency plummeted to 1.1399 from 1.1518. Against the sterling, the single currency jumped to 0.8847 from 0.8794.
- The Australian dollar edged higher on Friday after the upbeat comments by Reserve Bank of Australia Governor Glenn Stevens. He told the Parliament that inflation levels are closely watched and gave no hint of cutting the country's interest rates. Against the dollar, the Aussie jumped as high as 1.0502 from 1.0417. The British Pound slid against the greenback yesterday hitting 1.6259 from 1.6397. Investors are expecting the UK Gross Domestic Product to be released today at 08:30 GMT.
- Oil prices dipped to 83.00 dollars a barrel from 86.53. Gold rebounded to 1782.38 dollars an ounce from 1702.69. Silver also edged higher rising to 41.05 dollars an ounce from 38.72.
Currencies to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.4360 with a preference to enter Long positions at 1.4370
- § The USDJPY pivot point is at 77.15 with a preference to enter Long positions at 77.20
- § The OIL pivot point is at 86.60 with a preference to enter Short positions at 86.60
- § The Gold pivot point is at 1755 with a preference to enter Long positions at 1755
Today's calendar and market movers:
- § UK Gross Domestic Product in Q2 is forecast to gain 0.2%
- § Switzerland KOF Leading Indicator in August is forecast to fall to 1.82
- § US Gross Domestic Product Annualized in Q2 is forecast to gain 1.1%
- § US Consumer Sentiment Index in August is forecast to rise to 56.0
US equities were positive on Thursday with the S&P500 trading down -1.56% and the DJIA down -1.51%. The European bourses were also negative with the FTSE trading down -1.44%, the DAX down -1.71% and the CAC down -0.65%. The NIKKEI and the HSI at the time of writing are trading up 0.02% and down -0.21% respectively.
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