US DATA HEADLINES POST-JACKSON HOLE SESSION
With the conclusion of the annual Jackson Hole Symposium, investors are once again turning their attention to the economic data. Monday features a relatively light release schedule in comparison with the rest of the week.
The only notable European release occurs at 08:00 GMT when the Italian government reports on consumer confidence and business confidence data. Italy is the Eurozone’s third-largest economy in terms of GDP.
In US economic data, the Commerce Department will report on wholesale inventories at 12:30 GMT. The report captures sales and inventory statistics from the second stage of manufacturing.
At the same time, the Commerce Department will report on the July goods trade balance. Trade is a highly contentious issue under the Trump administration, which is looking to rewrite the North American Free Trade Agreement (NAFTA) with Canada and Mexico. NAFTA talks are set to resume early next month.
The Federal Reserve Bank of Dallas will release its manufacturing business index at 14:00 GMT. The report provides a snapshot of regional factory activity.
The economic calendar heats up toward the end of the week, with US nonfarm payrolls making headlines on Friday.
The Jackson Hole Symposium concluded on Saturday with no major headlines. On Friday, Janet Yellen gave what may have been her final Jackson Hole Speech as Federal Reserve chief.
In currencies, the US dollar was down during the Asian session, with the DXY basket falling 0.3%. The greenback is trading at it slowest level of the year.
Gold prices were well supported at the start of Asian trading, as the market continues to eye the psychological $1,300.00 level. Bullion has benefited from several bouts of risk aversion this month, and its latest uptrend is being supported by a weak US dollar. The yellow metal is bullish, according to the Relative Strength Index (RSI) and MACD.
The euro appears poised to extend its post-Jackson Hole recovery after the EUR/USD spiked more than 100 pips on Friday. The pair is currently trading at 1.1928, where it was little changed compared to the previous close. The EUR/USD faces immediate support at 1.1910, followed by 1.1860. On the opposite side of the ledger, immediate resistance is located at 1.1940. A break above this level would lead to new yearly highs.
The US dollar’s breakdown following Jackson Hole is clearly reflected in the USD/CAD exchange rate. The pair is trading at nearly one-month lows, having declined more than 300 pips from the mid-August high. The USD/CAD was last seen trading around 1.2470. The greenback is approaching oversold levels relative to the loonie, according to the Relative Strength Index (RSI). This may prompt a short-term correction for the pair.