The Anticipation before Jerome Powell’s speech is growing
The Fed in general was concerned about the weak inflation even before the coronavirus crisis that damaged the economy. Since then the fed has struggled to find ways to allow it to move, to bypass the pitfall of long-term slow increase and soft pricing strength.
Jerome Powell the FED Chairman, in a much-awaited address today, is anticipated to present the Fed’s strategy and especially how it will adjust its position toward inflation. The Fed has had a 2% inflation target, however in the past ten years since the financial crisis, it has more frequently not recognized an inflation drop under its target.
Hurricane Laura, another hit for oil
Oil prices continued in an even pattern today while an extensive storm in the Gulf of Mexico ran directly to the center of the U.S. oil industry, pushing oil rigs and refineries to close. A limited crash was speculated on supply as oil stockpiles continue to be high.
U.S. West Texas Intermediate crude futures dropped 4 cents, to $43.35 a barrel deleting yesterday’s small increase.
Gold lost 0.6% ahead of Powell’s speech
The popular Gold lost some ground today, after a sharp increase in the previous day, while investors seem to be in a defensive mode for now ahead of a much-anticipated speech from U.S. Federal Reserve Chairman Jerome Powell. Spot gold fell 0.6% to $1,941.43 per ounce following an increase of 1.3% yesterday due to expectations for additional stimulus measures. U.S. gold futures edged lower 0.2% to $1,949.50.
Greenback nears its lowest level in a week
The popular greenback floated today close to its weakest level for the week while traders seem to be looking for signs from Federal Reserve Chairman Jerome Powell in order to form a possible outcome.
Powell is scheduled to speak at the Fed’s annual central bankers’ conference later today typically located in Jackson Hole, Wyoming. However, this year due to COVID-19 the conference will be conducted virtually. The dollar’s index versus six important rival currencies held at 92.893, near the lowest level so far this week.
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