ANNUAL JACKSON HOLE SUMMIT SET TO BEGIN
The Jackson Hole Symposium is officially underway on Thursday. The annual event, which is hosted by the Kansas City Federal Reserve Bank, will attract central bankers from over 40 countries.
The theme of this year’s event is “Fostering a Dynamic Global Economy,” and will take place between 24-26 Aug. Among the attendees are Fed Chairwoman Janet Yellen and European Central Bank (ECB) President Mario Draghi.
Signs of shifting policy over the next three days could have ripple effects on the global economy. Analysts say they are not expecting any substantial signal from central bankers during the event. Reports circulated last week that Draghi could use Jackson Hole as an opportunity to deliver a big monetary policy speech. Those reports were later refuted by Reuters.
Investors can also expect a deluge of economic data from around the world. Action begins at 07:00 GMT with a report on Spanish gross domestic product (GDP). Spain’s GDP is forecast to have grown 0.9% in the second quarter.
UK National Statistics will release revised second quarter GDP numbers on Thursday. Quarterly growth is expected at 0.3%, unchanged from the previous estimate.
In North America, the US Labor Department will issue its weekly jobless claims report, which provides an ongoing snapshot of the labor market. Claims are projected to rise by 6,000 in the week ended 18 August to reach 238,000.
The National Association of Realtors (NAR) will report on existing home sales at 14:00 GMT. The sale of pre-owned homes is forecast to rise 0.9% to a seasonally adjusted 5.57 million in July. On Wednesday, the Commerce Department said new home sales plunged last month.
The Kansas City Fed will also release its monthly manufacturing survey at 15:00 GMT, capping off a highly active session.
The EUR/USD rebounded Wednesday as upbeat data boosted demand for the common currency. The pair broke above 1.1800, although gains stalled well below 1.1830 – a region that is likely to attract renewed selling interest. The pair faces immediate support at 1.1730.
The British pound slipped to fresh two-month lows on Wednesday, as cable struggled to shake off bearish pressure. The GBP/USD was down 0.1% in Asian trade. Prices are testing an initial support level at 1.2780. A break below that level would expose 1.2750 followed by 1.2710.
Gold prices rose on Wednesday, as risk aversion creeped back into the financial markets. Political risks were once again front and centre after US President Donald Trump said he would let the government shut down unless Congress provides funding for his planned border wall with Mexico. Bullion remains well supported in its current range, but will find it difficult to make a clean break above $1,300.00