The dollar is looking pretty ahead of European trading, after the ugly reversal in equities yesterday. It’s one of those times when market confidence is shaken and sentiment right now is extremely fragile. Whatever case that dip buyers had before the plunge yesterday is all but discarded out the door now.
US futures are looking calmer for the time being but there is an air of caution surrounding equities, as that is definitely one ominous-looking candle on the charts for the S&P 500 and Nasdaq in particular.
Looking to the session ahead, we will have the final figures for German Q2 GDP and the Ifo business survey for August. The latter will be yet another gauge of sentiment on Europe’s largest economy and could just pile on the misery for the euro this week.
But all the focus will be on the Jackson Hole symposium and Fed chair Powell’s speech. Although personally, I don’t see much in that as there shouldn’t be anything new that Powell can offer today as he did after last month’s FOMC meeting.
0600 GMT – Germany Q2 final GDP figures
0800 GMT – Germany Augus Ifo business climate index
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
