Market Update – August 26

USDIndex – back in demand ahead of Powell at Jackson Hole and as markets speculated on 100 bps in ECB hikes by October, though it recovered some to finish at 108.64.
EUR – Remains under parity. German GfK consumer confidence plunged to -36.5, which could keep Euro underpinned.
JPY has lifted to 137.00, GBP steady below 1.1800.
AUD fell 0.4% below the psychological level of $0.7 & NZD fell 0.5%, giving up some of the strong gains in the previous day. The AUD has been performing better against the battered European currencies.
Stocks: US stocks are in the red with concern over aggressive tightening and a rise in yields capping gains (USA100 rallied 0.41%, with the USA500 up 0.29%, and the USA30 0.18% higher). Nikkei and ASX are up 0.8% and 0.5% after a strong close on Wall Street. GER40 and UK100 futures have lifted 0.4% and 0.3% respectively.
Oil slumped by about $2 a barrel on the possible return of sanctioned Iranian oil exports and on worries about the impact on fuel demand from rising USinterest rates. Down to $92.08.
Gold – bounced from support at $1751.80  to $1758.70.

Today US PCE, Michigan Consumer Sentiment, Jackson Hole Symposium and Fed Chair Powell Speech. 

Biggest FX Mover @ (06:30 GMT) NZDUSD (0.45%). Dropped to 0.6195 from 0.6250. MAs aligning lower, MACD histogram negative & signal line falling, RSI 36.74 & dropping, H1 ATR 0.00089.


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Andria Pichidi

Market Analyst

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