Friday will be the main event at Jackson Hole as Fed Chairman Powell delivers a key speech. Despite the Fed minutes indicating July’s rate cut was purely a recalibration and comments from Kansas City Fed President Esther George that the rate cut was not needed, traders are hoping that he will allude to potential easier monetary conditions ahead.
As Wednesday came to a close, it was another chapter in the recent tale of volatility. Tuesday was fairly muted…
FX was very quiet during Asia and Europe with the only real movement being some profit taking in EUR/GBP after Friday’s big sell-off.
The US-China trade war rages on as do the protests in Hong Kong. With that comes uncertainty for equities as well as a boost for XAU. Crypto remains largely sidelined, although topside resistance is a concern for major coins as the momentum from the recent rally fades.
The rate cut in the US has traders confused as to whether it will be ‘one and done’ or if there are more on the way.
For crypto, it was a quiet day with a slow drift lower. BTC dropped to $11,600 and ETH to $218. Not too much to report other than the technical headwinds maybe a step too far for now.
The markets somewhat stabilised yesterday and gave everyone a little time to reflect on the past few sessions. Equities finally clawed back some losses, crypto pushed higher and FX consolidated.
Crypto continued to benefit from turmoil in other markets, with BTC getting a sharp spike to $12,325 and ETH flirting with resistance again above $237.
LTC blasted back up through the $100 level to a high around $107 as mining rewards were halved. With the broad market having lost around 40% of its value from the highs in June, this is an impressive comeback.
Friday was a day that was still trying to recover from the previous two-day volatility, courtesy of the Fed and President Trump’s decision to increase tariffs on China.