Market Roundup
• US Durable Goods Jul, -6.8%, -6.0% forecast, 6.4% previous.
• US Durable Ex-Transport Jul, 0.5%, 0.4% forecast, 0.1% previous.
• US Nondefe Cap Ex-Air Jul, 0.4%, 0.3% forecast, 0.10% previous.
• Atlanta Fed trims US Q3 GDP growth view to 3.4% from 3.8% Aug 16.
• CA Budget Balance, C$ Jun, 0.02 bln, -0.31 bln previous.
• Yellen: Financial rules have made the economy stronger, changes should be "modest".
• Fed can be patient about lifting interest rates -Powell.
• U.S. Treasury chief says 'debt ceiling will be raised'.
• ECB's Draghi warns of threat to global trade, openness.
• ECB needs fresh powers to intervene in bank failures, supervisor says.
• ECB's asset buys do little for inflation: Bundesbank research.
• Trump sanctions seek to halt financing for Venezuela 'dictatorship'.
Looking Ahead - Economic Data (GMT)
• No significant events
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD is likely to find support at 1.1836 levels and currently trading at 1.1875 levels. The pair has made session high at 1.1888 and hit lows at 1.1784 levels. The euro soared to its highest level in more than two years against the dollar on Friday after European Central Bank President Mario Draghi did not express concern about a strong euro zone currency, as some analysts had expected. Speaking at the U.S. Federal Reserve's annual policy conference in Jackson Hole, Wyoming, Draghi added that the current environment of easy monetary policy makes a major relaxation of financial regulation dangerous. While, the dollar declined after Federal Reserve Chair Janet Yellen made no reference to U.S. monetary policy in her speech at the annual central bank research conference in Jackson Hole, Wyoming. The euro hit a high of $1.1940, its strongest level since January 2015. It was last $1.1922, up 1 percent on the day.
GBP/USD is supported in the range of 1.2800 levels and currently trading at 1.2874 levels. It reached session high at 1.2885 and dropped to session low at 1.2809 levels. Sterling rose against the greenback on Friday as the dollar fell after Federal Reserve Chair Janet Yellen made no reference to U.S. monetary policy in her speech at a central bankers' meeting. In the absence of domestic events, Investors were closely following Yellen's speech. Investors were not expecting Yellen to make a policy statement but some market participants were hoping for some signal at least on the Fed's planned balance sheet reduction, if not on the outlook for U.S. interest rate hikes. Instead, Yellen focused on U.S. financial reforms. After falling as low as $1.2386 after the U.S. numbers, the pound recovered ground to trade 0.59 percent higher on the day at $1.2876.
USD/CAD is supported at 1.2450 levels and is trading at 1.2486 levels. It has made session high at 1.2537 and lows at 1.2464 levels. The Canadian dollar strengthened against its U.S. counterpart on Friday as prices of oil, a major Canadian export, rose modestly and greenback dipped after Federal Reserve Chair Janet Yellen did not mention monetary policy in a highly anticipated speech. The dollar, in which oil is priced, fell after Federal Reserve Chair Janet Yellen made no reference to U.S. monetary policy in her speech at the annual central bank research conference in Jackson Hole, Wyoming Yellen's speech at the annual meeting of central bankers in Jackson Hole, Wyoming focused on financial stability while giving no guidance on monetary policy, leaving the prospect of more interest rate hikes up in the air. The Canadian dollar was trading at C$1.2478 to the greenback, up from the previous session's close and higher against other major counterparts. The currency traded within a tight range between C$1.2462 and C$1.2539.
USD/JPY is supported around 109.00 levels and currently trading at 109.27 levels. It peaked to hit session high at 109.82 and made session lows at 109.09 levels. The U.S. dipped against the yen on Friday as demand for greenback declined after the U.S. Federal Reserve Chair Janet Yellen refrained from commenting on monetary policy in a speech, easing concerns of investors who had braced for a hawkish signal.At a conference in Jackson Hole, Wyoming, Yellen said regulations put in place after the 2007-2009 financial crisis had strengthened the financial system without impeding economic growth, and any future changes should remain modest. A batch of mixed U.S. economic figures have cast a shadow on the nation's economic recovery, driving some investors to dial back bets on an interest rate increase this year. A slower path of U.S. rate hikes could drive up demand for safe heaven assets, benefiting currencies like Japanese yen and Swiss franc.
Equities Recap
Fresh competition worries hit Ahold and other European retail stocks on Friday with euro strength weighing on the broader market as speeches by central bankers at the Jackson Hole gathering in the U.S. came into focus.
UK's benchmark FTSE 100 closed up by 0.1 percent, the pan-European FTSEurofirst 300 ended the day down by 0.05 percent, Germany's Dax ended flat, France’s CAC finished the day down by 0.1 percent.
U.S. stocks mostly rose slightly on Friday, lifted by high-dividend paying stocks, after Federal Reserve Chair Janet Yellen stayed silent on monetary policy in a much-anticipated speech.
Dow Jones closed up by 0.16 percent, S&P 500 ended up 0.18 percent, Nasdaq finished the day down by 0.10 percent.
Treasuries Recap
U.S. Treasury yields fell on Friday after Federal Reserve Chair Janet Yellen did not mention monetary policy in a highly anticipated speech, relieving some investors who thought she might make hawkish comments on the economy.
U.S. benchmark 10-year Treasury notes gained 5/32 in price to yield 2.178 percent, down from 2.194 percent on Thursday.
Commodities Recap
Gold firmed on Friday after U.S. Federal Reserve Chair Janet Yellen made no mention of monetary policy in her much-anticipated speech, while investors awaited clues from European Central Bank President Mario Draghi.
Spot gold was up 0.5 percent at $1,292.14 an ounce by 2:00 p.m. EST (1800 GMT) and was on track to close the week up 0.6 percent. U.S. gold futures settled up 0.5 percent at $1,297.90.
Oil prices rose nearly 1 percent on Friday as the dollar fell and the U.S. Gulf Coast braced for Hurricane Harvey, which could become the biggest storm to hit the United States mainland in more than a decade.
U.S. crude futures settled up 44 cents, or 0.9 percent, at $47.87 a barrel but down 1.3 percent on the week.Brent crude ended 37 cents, or 0.7 percent, higher at $52.41 and down 0.6 percent on the week.
