- The symposium in Jackson Hole begins today
- UK’s GDP release (a revision) is poised to be most important one
- A few US readings with a doubtful impact on the greenback though
The symposium in Jackson Hole kicks off officially on Thursday. Even as major speeches are scheduled on Friday, you never know when central bankers might tell some important remarks having an impact on currencies. On top of that, there is a second print of Q2 GDP from the UK as well as a few prints coming from the US later in the day.
9:30 am BST – Q2 UK’s GDP: It will be a second release (a revision) hence we’ll know more about contributions creating growth during Q2. The first figure showed 1.7% yoy and it’s expected to be confirmed today. The UK’s data have been mixed of late, therefore, a solid increase in GDP shored up by a firm structure could give some relief for the pound. The GBP lost ground yesterday as the EURGBP hit the highest level for 8 years (if we don’t count the flash crash seen in October). That said, a corrective pullback could emerge if GDP meets or even beats a forecast.
Three prints from the US – (weekly jobless claims at 1:30 pm BST, existing home sales at 3:00 pm BST and Kansas FED manufacturing index at 4:00 pm BST): The three mentioned readings are going to exert just a little impact on the greenback, however the housing data could be the most relevant. We got a new home sales release yesterday which by far missed an estimate. Thus, a feebler print with regard to existing home sales could challenge a further improvement in the whole US real estate. Let us recall that rising mortgage rates undoubtedly weigh on the housing market, though the weaker greenback offset that effect to some extent. The consensus points to 5.57m against 5.52 seen last month. In turn, a change in weekly jobless claims is slated to show 238k.
The symposium in Jackson Hole: The event was named a title “Fostering a Dynamic Global Economy” and it will be persisting till Saturday. Thursday should be light in terms of central bankers’ speeches but things are going to change tomorrow when Draghi and Yellen are scheduled to take the floor.
The GBPUSD seems to be rebounding in the morning trading. A move could extend towards a nearest resistance zone if the GDP report doesn’t disappoint. Source: xStation5