Big day for the markets as we wait to hear from Fed Chair Powell
Today is the day the market has been waiting for. Fed's Powell speaks at Jackson Hole at around 3pm London time. The markets want to see if he will bend to Donald Trump's demand and loosen monetary policy but if the rest of the Fed members are anything to go by the chances seem unlikely but I have definitely seen stranger things in my time. Asian markets were positive overnight, the Shanghai Comp. (0.50%), ASX (0.33%) and Nikkei 225 (0.40%) all closed higher.
Gold is still in a sideways consolidation phase heading into today's main event. It has managed to dip just under $1500/oz and starts the session down 0.26% lower at $1494/oz.
Copper had another tough session yesterday as reports of high inventory levels moved across the markets. $2.53/lb still cannot be broken to the downside and this morning prices are up 0.18%.
WTI was also bearish after the manufacturing PMI disappointment from the US yesterday. Although markets are holding steady at around $55/bbl. If we see any considerable USD strength it could send all the major commodities south.
Today we are on the lookout for Canadian CPI, Canadian retail sales, US new home sales, the Baker Hughes rig count, CFTC updates and the latest from Fed Chair Powell.