Last Friday’s virtual Jackson Hole Symposium continued to trouble the Greenback on the Wednesday session. Just after midday, GBPUSD was able to surge to a two-week caused by Dollar weakness. Sadly for Sterling bulls, Cable was unable to maintain this momentum “as the Dollar recovered” and “the pound” by the end of the session “gave up” some of “its gains. At 15:37 GMT, it was flat on the day at 1.3755”.
It would seem clear that until Jerome Powell and the Fed give investors more clarity on the direction they intent to take, the Dollar will not be able to find dependable stability. Reuters note that “At the conference on Friday, US. Federal Reserve Chair Jerome Powell offered no indication about when the central bank planned to cut its asset purchases beyond saying it could be "this year". The comments knocked the dollar and pushed up the pound”. In regard to data, “Investors are looking to US jobs figures this week for clues on when the Fed might taper its bond buying”. What is clear, given the troubles that plague Sterling,` any upside moves for GBPUSD should “be driven solely by USD weakness”.
GBPUSD started the day trading rather well at 1.3742 and remained firm till it spiked in the afternoon. Despite reaching fresh highs in the session, the pair dropped off towards to the close and finished at 1.3786.
GBPEUR in contrast made a modest loss on Wednesday. The pair started the day at 1.1647 and closed at 1.1629.
EURUSD has kept “trading within its recent narrow range for now”. The pair opened yesterday at 1.1798 and closed at 1.1854.
US weekly Jobs report is released today at 13:30. First will be Continuous Jobless Claims, followed by Initial Jobless Claims, and Jobless Claims 4-Week Average. All have ambitious forecasts and if missed it could mean more upset for the Dollar.