The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
Treasury profits hold ground
On Thursday, treasury profits generally stood still ahead of the kickoff of the Kansas City Fed’s annual gathering of global central bankers as well as other monetary policy experts in Wyoming, exactly where market participants will look for more indications on the key US bank’s rate lift path.
The 10-year Treasury note yield TMUBMUSD10Y managed to soar up to 0.03% demonstrating a reading of 2.828%. As for the 2-year note yield TMUBMUSD02Y,it gained 0.9 basis point coming up with an outcome of 2.604%. At the same time, the 30-year bond profit TMUBMUSD30Y stood still sticking with 2.987%.
Ahead of the Jackson Hole gathering the key US bank is going to attract much attention for the bond market. Besides this, Fed Chair Jerome Powell’s upcoming speech is anticipated to be the highlight. Market participants hope to get more clarity as for if the major US bank will change course to provide relief to emerging markets amid a strengthening greenback, higher rates as well as diminished liquidity. However, market experts tell that the major financial institution will reiterate that monetary policy turns out to be a function of American inflation and surge, and not global economic conditions.
Minutes from the major bank’s August gathering confirmed a third rate lift in September. Market participants will be waiting for clues what would ruin the Fed’s strong commitment to a gradual rate lift in the face of the soaring downside risks, such as trade tensions as well as the waning boost of recent fiscal stimulus measures. On Friday, Fed Chair Jerome Powell’s speech could potentially help to address those worries.
In addition to this, market participants are also going to handle a pack of economic data. For example, they are waiting for weekly jobless claims expected to show up a bit later.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…