It’s that time of the year people!

All eyes will be on the annual Jackson Hole Economic Symposium where central bankers and financial heavyweights discuss key economic issues that impact the world. Given how this major event could offer investors fresh insight into the Fed’s thinking on rates and inflation, get ready for a potentially wild week for financial markets. Before we take a deep dive into what to expect from Jackson Hole Symposium, here are the scheduled economic data releases/events in the coming week:

The main risk event and potential market shaker could be Federal Reserve Chair Jerome Powell’s speech at Jackson Hole on Friday, August 26th.

Investors have many questions for the Fed thanks to the latest developments revolving around inflation and the US labour force. According to the Fed minutes for July’s meeting, policymakers saw inflation as a significant risk to the economy and indicated they would remain aggressive until the beast was tamed. However, inflation in the United States cooled to 8.5% in July, encouraging traders to cut bets over how aggressive the Fed will be on rates. In regards to the jobs market, it defied recession fears with NFP increasing 528k in July. This has split expectations over the size of the next rate hike in September. Market players need clarity on how big future rate hikes will be and the strength of the US economy in the face of high inflation.

We expect many assets to be influenced by the Jackson Hole but our attention falls on gold. Powell’s remarks could be the fundamental spark the precious metal has been waiting for these months. Markets are still pricing in a 52% probability of a rate hike in September but the Fed could use Jackson Hole to shift the scales. If Powell strikes a hawkish tone and reinforces expectations around the Fed moving ahead with another jumbo 75 bps hike, this could drain appetite for zero-yielding gold. Alternatively, a cautious sounding Powell may reduce the odds of a jumbo hike, providing some support to gold.  

Prices are already under pressure on the daily charts and heading for their first weekly decline in five. The precious metal could be in store for more pain ahead of Powell’s speech if the dollar continues to appreciate. Talking technicals, $1740 remains a level of interest in the short term.

Pulling our focus away from the Jackson Hole and gold, there are a couple of key economic reports from major economies to keep a close eye on. We could see some volatility across currency markets in the run-up to the Symposium due to this.

Want to practice some trading?

Ready to trade with real money?

Start trading with a leading broker that gives you more.

Exinity Limited, 5th Floor, 355 NEX Tower,

Rue du Savoir, Cybercity, Ebene 72201, Mauritius

West End Towers, Waiyaki Way, 6th Floor,

P.O. Box 1896-00606, Nairobi, Republic of Kenya

FXTM brand is authorized and regulated in various jurisdictions.

ForexTime Ltd (www.forextime.com/eu) with registration number HE 310361 and registration address at 35, Lamprou Konstantara, FXTM Tower, 4156, Kato Polemidia, Limassol, Cyprus is regulated by the Cyprus Securities and Exchange Commission with CIF license number 185/12, licensed by the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614.

Exinity Capital East Africa Ltd (www.forextime.com) with registration number PVT-ZQU6JE7 and registration address at West End Towers, Waiyaki Way, 6th Floor , P.O. Box 1896-00606, Nairobi, Republic of Kenya is regulated by the Capital Markets Authority of the Republic of Kenya with a Non-Dealing Online Foreign Exchange Broker with license number 135.

Exinity UK Limited (www.forextime.com/uk) with registration number 10599136 and registration address at 1 st. Katharine's Way London, England, E1W 1UN, UK is authorised and regulated by the Financial Conduct Authority with license number 777911.

Exinity Limited (www.forextime.com) with registration number C119470 C1/GBL and registration address at 5th Floor, NEX Tower, Rue du Savoir, Cybercity, 72201 Ebene, Republic of Mauritius is regulated by the Financial Services Commission of the Republic of Mauritius with an Investment Dealer License with license number C113012295.

Card transactions are processed via FT Global Services Ltd, Reg No. HE 335426 and registered address at Ioannis Stylianou, 6, Floor 2, Flat 202 2003, Nicosia, Cyprus, and via Exinity Services Ltd , Reg No. HE 400404 and registered address at Agiou Georgiou Makri, 64, Anna Maria Lena Court, Flat 201, 6037, Larnaca, Cyprus. Address for cardholder correspondence: backoffice@fxtm.com.. Business location address: FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus.

Exinity Limited is a member of Financial Commission, an international organization engaged in a resolution of disputes within the financial services industry in the Forex market.

Risk Warning: Trading Forex and Leveraged Financial Instruments involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Trading non-leveraged products such as stocks also involves risk as the value of a stock can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of the FXTM brand based on the legal requirements in his/her country of residence.  Please read FXTM's full Risk Disclosure.

Regional restrictions FXTM brand does not provide services to residents of the USA, Mauritius, Japan, Canada, Haiti, Iran, Suriname, the Democratic People's Republic of Korea, Puerto Rico, Brazil, the Occupied Area of Cyprus, Quebec, Iraq, Hong Kong, Syria and Cuba. Find out more in the Regulations section of our FAQs.

Welcome to FXTM Live Support. Please select the communication method that is most convenient for you.