ForexLive European FX news wrap: Slow and steady ahead of Powell's Jackson Hole speech

Forex news from the European trading session - 27 August 2021

Headlines:

Markets:

• AUD leads, JPY lags on the day
• European equities mixed; S&P 500 futures up 0.3%
• US 10-year yields flat at 1.345%
• Gold up 0.2% to $1,795.10
• WTI up 1.6% to $68.50
• Bitcoin up 1.5% to $47,751

It was a quiet and uneventful one in European morning trade today as the market waits on Fed chair Powell's speech at the virtual Jackson Hole symposium later today.

The dollar is sitting little changed amid some light pushing and pulling, though relatively narrow ranges are holding out ahead of the main event.

Risk sentiment is in a modest spot as US futures are slightly higher after having snapped a run of gains in trading yesterday. European indices are mixed and more tepid though, as investors appear more tentative before committing to any firm moves for now.

Elsewhere, oil was a decent mover, climbing up well over 1% to $68.50. Besides that, there isn't much other notable movement on the session across the market.

It's all about Powell's speech later today and I'd expect no real push on tapering from Powell. As such, risk trades should observe a comfortable finish to the end of the week with the dollar perhaps erring slightly on the softer side.

That said, expectations are still in place for a potential start of acknowledging taper discussions in September (taper announcement in November and the start of tapering perhaps in December), any major downside for the dollar may remain limited.

August 27, 2021 at 11:46PM
Justin Low
https://ift.tt/2Wxb1zC