Market News

De-risking Ahead of Fed Chair’s Jackson Hole Speech


Explore the swift market reversal post Wall Street gains, de-risking actions, and Asia’s response to Jackson Hole impending speech.

Market Recap

The financial markets underwent a swift reversal as initial Wall Street gains gave way to a sell-the-news reaction driven by Nvidia’s impressive results. Market participants are taking precautionary steps to de-risk ahead of Fed Chair Jerome Powell’s impending Jackson Hole speech, leading to a 7.6% rise in the VIX due to increased hedging activities.The focus on the Fed’s policy outlook looms large, with attention directed at its data-dependent stance, progress in US inflation, and its potential impact on market sentiment. Powell’s emphasis on these factors could sway the perception between hawkish and less hawkish views, highlighting the risks of demand resurgence and advocating sustained higher rates.

De-risking Ahead of Fed Chair’s Jackson Hole Speech


Brent crude prices draw interest as dip buyers strive to defend the neckline of a head-and-shoulder formation, with the possibility of a more bullish stance requiring a move beyond the 85.40 level. Conversely, if the head-and-shoulder neckline at 82.70 breaks down, the 78.20 level becomes a key area to watch.

Asia Session Update: Markets React to Powell’s Speech

Asia’s negative open is evident: Nikkei -1.55%, ASX -1.05%, KOSPI -0.81%. Anticipation of Powell’s remarks triggered de-risking due to Fed minutes’ lack of consensus.
Nasdaq Golden Dragon China Index down 0.7%, challenging oversold Chinese equities’ recovery. Hang Seng’s inability to sustain RSI above 50 implies caution.
Tokyo’s August CPI data: headline inflation moderates to 2.9% from 3.2%, ‘core-core’ rises to 2.6% from 2.5%. USD/JPY influenced by hawkish Fed, strong US dollar.
AUD/JPY shows a near-term descending triangle, potential for broader bullish pennant with retracement to 38.2% Fibonacci. EUR/USD pressured to new two-month low.
EUR/USD grapples with USD pressure, tests 200-day MA. Weekly RSI retests key 50 level, fate depends on MA-line defense against sellers.
1.080 level crucial for EUR/USD support; breach may lead to 1.063 test, trading below 200-day MA since Nov 2022.

Don’t forget to read the Latest Market News

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Related Articles

US Economic Resilience Boosts Dollar: Unemployment Claims Surprise Markets

US unemployment claims fall below forecasts, indicating labor market resilience; robust data...

Market Focus: Analyzing Gold, EUR/USD, and USD/JPY Trends

Gold dropped, EUR/USD declined, and USD/JPY rose, prompting scrutiny of technical indicators...

Gold Surges to New Record High Amid Market Turbulence

Gold reached a new record high, driven by safe-haven trades following the...

Fed’s Barr and Jefferson: High Interest Rates Here to Stay

Federal Reserve Governor Michael Barr reiterated interest rates will stay high until...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

US Economic Resilience Boosts Dollar: Unemployment Claims Surprise Markets
Market News

US Economic Resilience Boosts Dollar: Unemployment Claims Surprise Markets

US unemployment claims fall below forecasts, indicating labor market resilience; robust data strengthens the dollar and impacts global currencies and commodities.

Market Focus: Analyzing Gold, EUR/USD, and USD/JPY Trends
Market News

Market Focus: Analyzing Gold, EUR/USD, and USD/JPY Trends

Gold dropped, EUR/USD declined, and USD/JPY rose, prompting scrutiny of technical indicators for future trends.

Copyright © 2023 Forex Prop News. All Rights Reserved.