S&P 500 surpasses 4,500

“Formal education will make you a living; self-education will make you a fortune.” – Jim Rohn

 

 

HEADLINES

 

 

• Dollar Flat Amid Easing Expectations for Big Reveal at Jackson Hole
• Chasing the local stories - ING
• Gold price retreats past $1,800 as dollar halts slide
• Oil rises on US fuel demand, extends rally
• S&P 500 Index sets new all-time high above 4,500
• Retail Traders Pile Into China Stocks in Dip-Buying Mode
• USD/KRW: BoK on hold to check won's recovery – SocGen

 

 

FOREX

 

 

Dollar Flat Amid Easing Expectations for Big Reveal at Jackson Hole

 

The dollar remained flat Wednesday in subdued trade amid expectations that the annual Jackson Hole symposium later this week is unlikely to offer up the sort of monetary policy surprise that will trigger wild moves... As the symposium draws closer, the dollar has been on the back foot and trading action has been subdued, suggesting that currency markets aren't anticipating meaningful clues on the Fed's plan to taper its bond purchases.

 

Chasing the local stories - ING

 

FX volatility remains near the lows as investors remain unconvinced that Jackson Hole will light a fire under markets. The gains earlier this week of riskier currencies against the dollar seem to be fizzling out, but there have been good local stories in Hungary and New Zealand. Expect a continued focus on local stories until a clearer $ story emerges

 

 

COMMODITIES

 

 

Gold price retreats past $1,800 as dollar halts slide

 

Gold prices retreated below $1,800 on Wednesday as the US dollar halted its slide, while investors sought cues on the timeline of monetary tapering from the US Federal Reserve’s symposium later this week Earlier this week, gold surged to its highest in nearly three weeks, driven by a broad retreat in the dollar..

 

Oil rises on US fuel demand, extends rally

 

Oil prices rose about 1% on Wednesday, extending gains for a third session, after U.S. government data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic. The four-week average for U.S. total product supplied, a proxy for fuel demand, soared to nearly 21 million barrels per day, its highest since March 2020, when governments first began to widely impose pandemic-related restrictions, U.S. Energy Information Administration data showed Wednesday.

 

 

STOCKS

 

 

S&P 500 Index sets new all-time high above 4,500

 

After closing virtually unchanged on Tuesday, the S&P 500 Index started the day in a calm manner on Wednesday and spent the first couple of hours moving sideways in a narrow band. However, with financial stocks gaining traction and posting strong gains, the S&P 500 turned north and reached a new record high of 4,501 in the last hour.

 

Retail Traders Pile Into China Stocks in Dip-Buying Mode

 

A bout of frenzied buying from dip-hunting retail traders over the last couple of days helped spur a rally in Chinese stocks listed in the U.S. after a prolonged selloff. Net purchases of Chinese technology shares in New York by retail investors in the past five trading sessions topped the $400 million mark, according to Vanda Research.

 

 

ANALYSIS

 

 

USD/KRW: BoK on hold to check won's recovery – SocGen

 

“Around half (10 out of 19) of analysts polled by Bloomberg pencil in a status quo, including our own economists. We think the BoK will bide its time in light of rising COVID-19 infections and instead will tighten 25bp to 0.75% in October. We think this will probably be followed by 100bp in 2022… “No change in policy could, in theory, check the won’s progress, and we suspect that the direction of stocks will be the swing factor instead.”

 

 

CHART

 

 

Australian dollar / US dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

AUD/USD has risen off the bottom of its falling channel and the 0.71 level. The downtrend will be tested at the 0.73/7325 area from the top of the channel and supply area. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/usd-krw-bok-on-hold-to-check-wons-recovery-socgen-202108250747
https://www.fxstreet.com/news/sp-500-index-sets-new-all-time-high-above-4-500-202108251815
https://www.investing.com/news/commodities-news/oil-falls-in-breather-after-twoday-rally-on-supply-issues-2598755
https://www.investing.com/news/forex-news/dollar-flat-amid-easing-expectations-for-big-reveal-at-jackson-hole-2599679
https://finance.yahoo.com/news/retail-traders-pile-china-stocks-183820965.html
https://www.mining.com/gold-price-retreats-past-1800-as-dollar-halts-slide/
https://think.ing.com/articles/fx-daily-chasing-the-local-stories