Markets are on waiting mode as central bankers set to deliver policy updates.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Fed speech takes main focus
Markets looked ahead Friday to a speech from Federal Reserve chair Janet Yellen at the Jackson Hole Economic Symposium in Wyoming to see if the U.S. central bank chief will offer further clues as to the outlook for monetary policy.
According to the Fed, Yellen will give a speech on “Financial Stability” at 14:00 GMT.
Though expectations for anything “dramatic” are practically zero, some experts suggest that she could attempt to convince skeptical markets that the Fed will indeed follow through on one more rate hike this year.
Ahead of Yellen’s remarks, Fed fund futures price in the possibility at only around 45%, and, in fact, the odds for another 25 basis point increase do not pass the 50% threshold until March 2018.
2. Eyes on Draghi’s remarks
European Central Bank president Mario Draghi will also be in the spotlight at Jackson Hole with a speech scheduled at 19:00 GMT Friday.
While market expectations had been previously high that Draghi would use his address to signal ECB tapering in the autumn, reports last week suggest he will not be making major policy announcements.
Still, market players will keep a close eye on Draghi’s remarks on the euro to measure the hawkishness/dovishness of the central bank chief.
The single currency was trading flat against the dollar as investors wait for remarks from Draghi and U.S. counterpart Janet Yellen.
3. Markets put on hold
Currency markets were on pause ahead of appearances from the heads of the U.S. and European central banks.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slipped 0.05% at 93.18 by 09:57 GMT.
Apart from Yellen, investors will also digest durable goods orders for July at 12:30 GMT, as they look for indications on the strength of the U.S. economy at the start of the third quarter.
Ahead of these references, gold also showed cautious trade. Gold for December delivery on the Comex division of the New York Mercantile Exchange edged forward just $1.32 cents, or 0.1%, to trade at $1,293.32 by 09:57 GMT.
4. Oil rises on Hurricane threat
Meteorologists forecast that Hurricane Harvey could become a category 3 “major hurricane” when it hits Texas either late Friday or early Saturday.
Harvey has rapidly intensified since Thursday, spinning into potentially the biggest hurricane to hit the U.S. mainland in 12 years.
Prices rose as production in the affected area, responsible for 45% of the nation’s refining capacity and 17% of U.S. output, shut down in preparation for the hurricane, and on expectations that closures could last if the storm causes extensive damage
Investors also looked ahead to the latest gauge on U.S. shale production when Baker Hughes releases its most recent weekly rig count data later on Friday.
