Powell speech

The dollar slipped on the final trading day of the week, after rising briefly earlier in the day following the conclusion of the trade talks between U.S. and China that has produced only a little progress. As a result, most majors attempted minor recoveries, with the EUR/USD pair heading back towards the 1.16 handle and GBP/USD moves upwards the 1.28 handle.

Scott Morrison is the new Australian Prime Minister, and the Australian dollar rallies on Friday, reversing earlier losses, ending a political crisis that knocked investor confidence this week.

Heading into Europe, the German second-quarter final GDP figures have dropped in at 06:00 GMT confirming the preliminary readings of 0.5% , while from the UK docket, the BBA mortgage approvals data will be reported at 08:30 GMT, which is expected to have virtually no impact on the GBP markets, as Brexit-related news and USD dynamics will remain the main drivers for GBP/USD. Ahead of the US session the US durable goods data will be released at 12:30 GMT.

However, the focus of the day will be at the 2nd day of the Jackson Hole Economic Policy Symposium, with the Fed Chair Powell’s speech at 14:00 GMT for fresh insights on further rate hike plans and US-China trade spat. Although it is unlikely to provide immediate news to markets as the short-term policy is well-known, traders will look for hints about the long-term plans.

Oil prices rose on Friday as U.S. sanctions on Iran are expected to cut significant volumes of crude from the market, although trading was muted by concerns over the unresolved trade dispute between US and China. Brent crude oil futures currently are at $75.11 per barrel up 39 cents, from their last close, while U.S. West Texas Intermediate (WTI) crude futures were at $68.25 per barrel, up 42 cents.

Currently gold price is on an uptrend in today’s session after the dollar slipped after rising briefly earlier following the conclusion of the trade talks between U.S. and China. It is clear though, that gold has lost its appeal as a safe-haven asset as investors turned to the U.S. dollar instead amid recent international trade disputes and the Turkish currency crisis. Moving ahead, gold prices may move on Powell speech at the Jackson Hole symposium, as the annual gathering is often used to unveil guidance signalling the direction of policy in the subsequent months.