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USD Flying Higher. Indices & GBP Falling. What is Jackson Hole?

   

Hey Valutraders! Have you seen the strength of the USD?

Subscribe to Free Valutrades Signals at https://www.valutrades.com/en/trading-signals

I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at the S&P 500 (US500), WTI, (US Oil), GBPUSD, EURUSD, and the USD Index.



There is a fierce debate going on regarding whether or not Inflation has peaked in the United States.Screenshot 2022-08-22 at 11.47.40

It seems that investors think that inflation is bad and that the Fed will be raising Interest Rates next month.Screenshot 2022-08-22 at 11.47.50

This is driving USD higher on the USD Index and the effect on USD pairs is the same with EURUSD heading back to parity at $1.002.

Also, we see GBPUSD at $1.18, and USDCAD at $1.30.Screenshot 2022-08-22 at 11.47.59

This is also driving most stock indices lower as well, and we can see this impressive dip in the S&P 500 lately.

Importantly for investors, however, will be the meeting of global central bank governors in Jackson Hole, Wyoming this week.

In particular, Jerome Powell’s speech on Friday will give investors, analysts and banks some idea of the direction of the Fed going into new Interest Rate decisions.Screenshot 2022-08-22 at 11.48.11

Also, talk of recession from Jackson Hole will affect the price of Crude Oil with any recession affecting demand which is driving prices lower.

Let’s take a look at this from the technical side tomorrow.Screenshot 2022-08-22 at 11.48.18

Our weakest currency right now is GBP with droughts and strikes affecting the entire UK economy.

So, a big GBP reversal won’t occur until we see a bit of rain in the UK, a relief to labour unrest, and a new Prime Minister next month.Screenshot 2022-08-22 at 11.48.28

We have a lot of US news this week, besides Jackson Hole, with New Home Sales tomorrow, Durable Goods Orders and Pending Home Sales Wednesday, and a critical GDP report on Thursday.

Thanks for watching and don’t forget to subscribe to Valutrades Signals and the link will be in this video’s description below.

Also, subscribe to our YouTube channel and register on the Valutrades website to get notifications on new content as it happens.

That’s all for now. Happy trading with Valutrades and we will see you next time.

CFDs and FX are leveraged products and your capital may be at risk.22 August 2022 Fundamentals EN TH

 

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The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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