Forex Today: Dollar licks its wounds, cryptos climb down, US GDP, jobless claims eyed
|Here is what you need to know on Thursday, August 26:
Markets have cooled down on Thursday after another upbeat session on Wednesday. Investors are eyeing an update on US GDP and jobless claims on Thursday ahead of a speech by the Fed's Powell on Friday. Covid headlines are also eyed. Cryptocurrencies are on the back foot and gold remains under $1,800.
US Durable Goods Orders figures for July mostly beat estimates, triggering selling pressure on US bonds, pushing yields higher and initially boosting the dollar. However, an upbeat mood took over on Wednesday, sending the safe-haven dollar down.
US Durable Goods Orders: Consumers, business hold steady in July
On Thursday, markets are calmer, partially due to concerns about China's crackdown on its tech companies and as tensions mount toward Friday's big event.
The Federal Reserve's closely-watched Jackson Hole Symposium kicks off on Thursday, with tensions rising toward Chair Jerome Powell's speech on Friday. Investors expect him to remain from hinting about imminent tapering of the Fed's $120 billion/month program.
How to trade the Jackson Hole meeting
Rising US COVID-19 cases have caused the Fed to hold the event virtually, one of the signs that there is no rush to withdraw stimulus. While hospitals in Florida are under immense pressure, the pace of increases has been moderating.
Updated US Gross Domestic Product statistics for the second quarter are set to show an annualized growth rate of 6.7%, better than the initial read of 6.5%. Weekly Unemployment Claims are forecast to extend their downtrend.
EUR/USD is trading above 1.1750, shrugging off downbeat German consumer and business climate data. The European Central Bank's meeting minutes are due out later in the day.
GBP/USD is hovering around 1.3750 as investors watch a new increase in UK coronavirus cases. AUD/USD is struggling around 0.7250 as the virus continues spreading in Sydney and other Australian cities.
Cryptocurrencies are been extending their decline from the highs, with Bitcoin battling to hold onto $47,000 and Etehreum clinging to $3,100. Cardano, the third digital asset in terms of market capitalization, is also off the highs, pressured toward $2.50.
Gold is trading around $1,790, consolidating its losses while WTI is changing hands at around $68, substantially above the lows recorded last week.
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