Markets trade cautiously ahead of Powell speech

The Dollar weakening has paused currently ahead of Powell’s speech at 17:10 CET today following the US Labor Department report at 16:30 CET expected to show 1 million Americans likely sought unemployment benefits over the last week. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.1% Wednesday despite data showing US orders for durable goods rose 11.2% in July helped by a 22% surge in automobile demand. EUR/USD reversed its climbing yesterday while the GBP/USD added to gains with both pairs lower currently. AUD/USD extended gains while USD/JPY reversed its climbing yesterday with both pairs higher currently.

Futures on three main US stock indexes are mixed currently after a bullish run on Wednesday led by technology shares. The three main US stock indexes recorded gains ranging from 0.3% to 1.7% supported by expectations the Federal Reserve will signal it will keep monetary policy easy in a speech by Chairman Jerome Powell. European stock indexes are mixed currently after a bullish session Thursday. Asian indexes are mixed today too with Shanghai Composite leading advancers after reports China’s industrial profit growth jumped in July 19.6% from a year earlier, higher than June’s 11.5%.

Brent is edging higher today. US oil prices ticked up Wednesday after the US Energy Information Administration report that US crude oil inventories fell by 4.7 million barrels last week, the fifth weekly decline in a row. Gasoline inventories declined by 4.6 million barrels. The US oil benchmark West Texas Intermediate (WTI) futures advanced: September WTI gained 0.1% but is lower currently. October Brent crude however closed 0.5% lower at $45.64 a barrel on Wednesday.

Gold prices are pulling back today. December gold jumped 1.5% to $1952.50 an ounce on Wednesday.