Waiting for Powell's speech | | | | | Hello, my name is Nicholas. I am a financial analyst in the OctaFX team. | | | | | Let's rewind to review the events that impacted the market and which events will affect it this week. | | Global policymakers launched an unprecedented wave of monetary easing and financial support to offset the economic downturn caused by the pandemic. However, investors are concerned about the impasse in negotiations between House Democrats and Republicans over the next bill to help those impacted by the coronavirus. 28 million Americans are expected to continue to collect unemployment checks. This has caused the dollar to fell to record lows last week. | | | | Negotiations between Britain and the European Union regarding a post-Brexit trade deal continue, although not as speedy as investors would like this to be. As a result, the Euro's surge has slowed down. Also, weak economic data pointing to a slower recovery in the Eurozone hit the region's stock markets on Friday, as the coronavirus cases increased. | | | | This week, investors will be closely watching Federal Reserve chief Jerome Powell's speech on Thursday for a hint on how aggressively the U.S. Central Bank will try to manage the long-term recovery from the coronavirus pandemic. | | | | | | | EUR: Gross Domestic Product | | USD: New Home Sales | | | | | | USD: Durable Goods Orders | | | | | | CHF: Gross Domestic Product | | USD: Initial Jobless Claims | | USD: Gross Domestic Product Annualised | | | | | | EUR: Harmonised Index of Consumer Prices | | CAD: Gross Domestic Product Annualised | | | | | | CNY: Non-Manufacturing PMI | | CNY: NBS Manufacturing PMI | | | | | | | | | The S&P 500 and Nasdaq closed at record highs on Friday. Data released by Apple indicates positivity within the U.S. economy. Business activity in the U.S. has returned to August 2019 levels. Another reporter shows investors that U.S. home sales rose at a record pace for the second consecutive month while home prices reached an all-time high. The indices may correct itself downward before growing again. | | | | | Sentiment towards the U.S. dollar has improved due to positive economic data on economic activity, but concerns linger regarding how much monetary easing may be needed to maintain economic growth. The dollar stabilised against most major currencies Monday, as traders prepare for the Federal Reserve chair's speech from Jackson Hole, Wyoming, which will provide a glimpse to the U.S.'s future monetary policy. | | | | | With gold prices falling recently due to the introduction of a vaccine fashioned in the Russian Federation, uncertainty has grown. Nearly 1.3 billion USD has been withdrawn from ETF's that specialise in gold. Most likely, we are waiting for a series of regular sales due to the dollar's strengthening. The support level is 1906, and if the price drops lower, it's possible to consider changing the trend from up to down. | | | | | On Sunday, hurricane Marco and tropical storm Laura swept through the Caribbean and the Gulf of Mexico, forcing energy companies to recall workers from offshore platforms, halting oil production. Despite this, oil prices remain unchanged, as investors are more fearful of a second wave of coronavirus, which would lower oil demand more than a temporary stop in production. Growth of Brent oil prices has been unable to crack the 45-USD level, so a sharp jump in the near future is unlikely. | | Trade wisely | | | | | | Trade in our app |  | | | | Business license no. 19776 IBC 2011 | | Registered address: Suite 305, Griffith Corportate Centre, Beachmont, Kingstown, St. Vincent and the Grenadines | | © 2020 Octa Markets Incorporated | | | | |
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