The Markets Are Cautiously Anticipating the Jackson Hole Meetings
Weekly News Summary
European stocks closed lower yesterday as the early gains of chip industry companies faded and the winning streak of mining companies, which lasted for three consecutive days, came to a halt. Economic concerns kept investors on edge, leading to a 0.4% decline in the European STOXX 600 index.
The Federal Reserve Board holds its annual meeting in Jackson Hole, Wyoming from August 24th to 26th. Investors are eagerly anticipating the speech by Chairman Jerome Powell today, Friday, to gauge whether interest rates will remain elevated for a longer period.
Dollar Index (USDX)
The dollar and US Treasury bond yields surged following new data on unemployment claims in the United States. The data released yesterday indicated that the US unemployment benefit claims suggest the job market remains robust. Some are suggesting that these reports could support the Federal Reserve’s more stringent message regarding prolonged interest rate increases.
Currently, the dollar index is trading above the pivotal point at $104.15.
Pivot point: 103.60
| Resistance level | Support level |
| 104.20 | 103.40 |
| 104.45 | 102.90 |
| 104.95 | 102.60 |
Spot Gold (XAUUSD)
Gold prices remained relatively stable on Thursday, despite the rise in the dollar and the increase in US Treasury bond yields. This stability can be attributed to a sense of caution emerging ahead of Jerome Powell’s speech, the Chairman of the Federal Reserve, at a central bankers’ meeting in Jackson Hole.
In the spot market, gold edged up by 0.1% to reach $1916.69 per ounce.
Pivot point: 1917
| Resistance level | Support level |
| 1922 | 1911 |
| 1928 | 1905 |
| 1934 | 1899 |
Dow Jones Index (DJ30ft – US30)
The US indices closed with significant collective losses on Thursday, led by technology stocks, as market participants awaited the speech by the US Federal Reserve Chairman on Friday at the Jackson Hole Symposium.
The Dow Jones index declined by approximately 1.08%, which translates to around 274 points, during Thursday’s session, marking its lowest closure in over 6 weeks. The NASDAQ index dropped by around 1.9%, marking its most substantial daily loss in 3 weeks. The S&P 500 index also experienced a decrease of about 1.35%, amidst widespread losses across major sectors.
Pivot point: 34325
| Resistance level | Support level |
| 34550 | 33915 |
| 34960 | 33685 |
| 35185 | 33280 |
US Crude (USOUSD)
Crude oil prices closed slightly higher on Thursday in a volatile session. They initially dipped by a dollar per barrel in early trading due to demand concerns and the strength of the dollar. However, they later recovered after a report of diesel inventories declining in Europe.
Brent crude rose by 15 cents, equivalent to 0.2%, reaching $83.36 per barrel. West Texas Intermediate (WTI) crude also climbed by 16 cents, or 0.2%, reaching $79.05 per barrel.
Pivot point: 78.55
| Resistance level | Support level |
| 79.55 | 77.85 |
| 80.25 | 76.90 |
| 81.25 | 76.20 |
Risk Warning
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