USD stronger with momentum ahead of Jackson Hole
Gold closes down $14 at $1926 after spiking to $1962
S&P500 and Nasdaq closes at record highs. Again!
Once again the Nasdaq and S&P500 take the headlines for new all-time highs. The tech boom showing the way as an adjustment to members of the Dow Jones index shows how quickly investor momentum can change with Exxon Mobil dropping out after being the world’s largest company only 7 years ago! Positive vaccine news helped support risk throughout the day with the USD on the backfoot for most of Asia and European trading before the US session saw the greenback bounce back somewhat. Possibly some positioning ahead of Powell’s speech on Thursday. Gold spent most of the day 1930-1940 but took a leap on the European open squeezing as high as 1962 a $50 jump from Fridays low squeezing some intraday players, however momentum swung back the other way and the pair closed back at 1926. The AUD failed above 0.7200, EUR/USD capped at 1.1850 and Cable despite a brief rally back to 1.3150 fell back 100 pips into the close to all finish not far from where they started yesterday as 10 year yields creeped higher aiding the USD bid tone. On the political front the Republicans officially nominated Trump as their candidate for the 2020 election but more of note was India announcing a phase out of Huawei from its networks that could likely inflame an already tense relationship with China. In Asia we will see Australian weekly payroll data likely to highlight the lockdown in Victoria and impact on the local economy, however the German IFO release will be the highlight during the European session.