Here is what you need to know on Friday, August 23rd:
-Sterling was the shining star of the day, soaring over 100 pips against the Dollar following comments from German Chancellor Angela Merkel, indicating that something can be done to prevent a hard-Brexit in the upcoming 30 days. French President Macron, however, insisted on protecting the Union.
– Better-than-expected EU data failed to boost the EUR. The EUR/USD pair met sellers once again at around 1.1110, a critical Fibonacci resistance, as despite positive, the EU and German PMI indicated that the economy continued to underperform.
– US Services PMI contracted to 49.9, its lowest in almost a decade.
– Hawkish comments from Fed’s officials suggest the Fed won’t act to prevent a recession. The US yield curve inverted once again intraday, triggering risk-off. Wall Street retreated sharply after a robust start to the day.
– Commodities edged lower, with gold battling to retain the 1,500.00 level, and oil dragged lower by the usual market concerns about growth.
– The Jackson Hole Symposium stated and policymakers’ words are being closely watched and quickly priced in.
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