What to Look out for Today – Another Eclipse for USD?

On Monday the US was privy to a very unique celestial phenomena – a solar eclipse – unfortunately USD experienced a very formulaic phenomena, a drop of its price as a result of the Trump administration’s instability.

Yesterday Trump went on record saying that he was considering disbanding the North American Free-Trade Agreement. This saw the Yen climb substantially against its G10 counterpart, the USD, during the Asian trading session.

To further mire down the US currency Trump went on to threaten a government shutdown if his border wall between wasn’t funded. Although USD fell it seems that most US indices are trading in the green with an average gain in the neighborhood of 1% at the time of writing this article. Another side-effect although expected is creating once again a risk-off sentiment.

After this political volatility dies down, we can assume that most traders will be focused on the Jackson Hole Summit in hopes that one of the world’s top central banking official will release market moving information. The summit is taking place in the Jackson Hole resort in Wyoming between Thursday and Saturday – the most followed speakers are expected to be Fed Chair Janet Yellen and ECB President Mario Draghi – with the summits theme revolving around Fostering Dynamic Global Economy. Although investors are hoping for information regarding sluggish interest rates – at least Draghi’s focus will be on the main topic of the summit according to one of his aides.

Fundamental data wise everything seems quiet sans the UK Inflation Report Hearings and ECB’s Mario Draghi’s speech at the opening of 6th Lindau Meeting on Economic Sciences in Germany. Markets will be watching both events but probably won’t expect anything significant to be announced/released.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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