The Pound, Euro, and US Dollar (GBP, EUR, USD) exchange rates might be in for some interesting market movement today with a host of events and data scheduled to take place. The hot topic today will be the US Federal Reserve’s annual central bank symposium in Jackson Hole where new Fed Chair Jerome Powell will be in the spotlight.
What will Fed Chair say about Interest Rates in Jackson Hole?
US economic growth has been going well and so the Federal Reserve has been in a rapid cycle of interest rate hikes. However, US President Donald Trump chose to replace former Chair Janet Yellen with Powell and has recently commented that he feels uncomfortable with the number of rate increases. Powell’s speech will, therefore, be of interest to investors as they attempt to detect the future path of Fed monetary policy. Industry expert Gregory Perdon suggests that Powell ‘will probably try to signal a level of cautious optimism’. Markets will be interested to hear how much influence the President has over the central bank’s decisions and Powell is unlikely to want to enter into a public back and forth with Trump.
Pound, Euro, US Dollar (GBP, EUR, USD) Exchange Rates to Fluctuate on Economic Data
Meanwhile, in the UK, the latest BBA Loans for House Purchase stat will make its way onto the market, forecast to come in at 40,500 in July, after the previous month’s 40,541. Other economic data to watch out for will include the latest Durable Goods Orders figure which is expected to contract in July. The June reading printed at 0.8%, but the July number is forecast to drop to -0.5% In the Eurozone, the most significant data will come from Germany today, with the final second quarter Gross Domestic Product (GDP) readings. It’s expected the non-seasonally adjusted number will print at 2.3% on the year, while the adjusted stat comes in at 2.0%.
On Friday, the Pound to US Dollar (GBP/USD) exchange rate was trending between highs of 1.2909 and lows of 1.2811. The Pound to Euro (GBP/EUR) exchange rate was trading between highs of 1.1147 and lows of 1.1082.