What you need to take care of on Friday, August 26:
The greenback ended Thursday mixed across the FX board, although there were no significant changes among major pairs. Investors are mildly optimistic as macroeconomic figures were upbeat but cautious ahead of central banks' governors, set to speak within the Jackson Hole Economic Symposium.
Germany reported that the Q2 Gross Domestic Product rose by 1.7% YoY, better than the 1.4% previously estimated. In the quarter, it was up by 0.1%, revised from 0% previously. Also, the August IFO survey showed the Business Climate reached 88.5, better than the 86.8 expected. Expectations and the assessment of the current situation were better than anticipated.
The European Central Bank released the minutes of its latest meeting, which showed that a "very large number" of Governing Council members agreed that it was appropriate to raise key rates by 50 basis points while also noting that members agreed that it was "appropriate to take further steps on the path of monetary policy normalisation."
The US published the second estimate of the Q2 GDP, which was upwardly revised from -0.9% to -0.6%. Additionally, Initial Jobless Claims for the week ended August 19 declined to 243K, beating the market expectations.
The EUR/USD pair briefly traded above parity but could not retain gains and stabilised around 0.9970, unchanged for a third consecutive day. GBP/USD holds above the 1.1800 figure. The USD/CAD pair is at around 1.2920, while the Australian dollar was the best performer vs the greenback, now trading at around 0.6980.
Spot gold is up for a third consecutive day and currently trades at around $1,757 a troy ounce. Crude oil prices, on the other hand, gave back some ground, and WTI stands at $93.10 a barrel.
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The AUD/USD pair has not responded effectively to the release of the Australian S&P Global PMI data. The asset has continued to trade sideways around 0.6640. Earlier, the major rebounded firmly after picking significant bids below 0.6580.
The USD/JPY pair is displaying back-and-forth moves in a narrow range of 142.27-142.58 in the Tokyo session. The asset displayed a pullback move after hitting a low below 141.00. The major is expected to re-test the cushion of 141.00 as the Bank of Japan (BOJ) could intervene further in the currency markets to support yen.
With the central banks’ decisions out of the way, Gold price is treading water above $1,650, as the dust settles after another volatile week. Investors now assess odds for the next Fed move while awaiting a fresh batch of economic data.
“Silver to Bitcoin’s Gold” has been Litecoin’s identity since its inception, and rightfully so since it is truly no different than Bitcoin in any way except that it is not as well known as the king coin. Regardless, Litecoin has achieved sustainability in a unique way.
After a week in which a dozen central banks around the world either tightened policy or resorted to currency intervention, the focus is now on the economy. Just how much of the move was priced in, and how much will economic growth be impacted going forward.
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