The Fed shook the market on Thursday, as Powell adjusted his inflation target as expected, Treasury yields climbed, the dollar bottomed out above the 93 mark, gold plunged more than $20 to close just below 1930, and the DOW and S&P 500 ended higher.
The session will focus on THE U.S. PCE price index, the University of Michigan consumer Sentiment Index, the Euro zone consumer sentiment and economic sentiment index, and a speech by Bank of England Governor John Bailey.
In the currency market
Euro: The euro fell against the DOLLAR for a second day, closing down 0.08% at 1.1819. Technically, the pivot point of the currency is at 1.1827, the initial resistance to its upward movement is at 1.1893, further resistance is at 1.1966, and the key resistance is at 1.2032. The initial support is at 1.1754, further support is at 1.1688, and more critical support is at 1.1614.
Sterling: Fell for the first time in three days, closing down 0.02% at 1.3206 against the DOLLAR. Technically, the pivot point of the currency is at 1.3214, the initial resistance to the exchange rate upward is at 1.3268, further resistance is at 1.3338, and the key resistance is at 1.3392. The initial support for the lower exchange rate is at 1.3145, further support is at 1.3091, and more critical support is at 1.3021.
Yen: Usd/JPY turned higher, closing up 0.54% at 106.55. Technically, the pivot point of the currency is at 106.28, the initial resistance to its upward movement is at 106.97, the further resistance is at 107.38, and the key resistance is at 108.07. Initial support for the lower exchange rate is at 105.87, further support is at 105.18, and more critical support is at 104.77.
The stock market
Stocks were mixed on Thursday after the Federal Reserve unveiled a new framework for keeping interest rates low for an extended period. The S&P 500 closed up 5.80 points, or 0.17%, at 3,484.54. The Nasdaq closed down 35.70 points, or 0.31%, at 11,629.34. The Dow Jones Industrial Average closed up 160.40 points, or 0.57%, at 28492.27.
London (Marketwatch) – European stocks ended lower on Thursday, losing recent positive gains after a key speech by Federal Reserve Chairman Colin Powell. In Europe, the Stoxx 600 index closed down 2.40 points, or 0.64 percent, at 370.72. Germany’s DAX index closed down 93.79 points, or 0.71 percent, at 13096.36. Britain’s FTSE 100 index closed down 45.61 points, or 0.75 percent, at 5999.99. France’s CAC-40 index closed down 32.46 points, or 0.64%, at 5015.97. Spain’s IBEX35 index closed down 46.00 points, or 0.65%, at 7,077.00. Italy’s FTSE index closed down 289.91 points, or 1.44%, at 19,847.38. In Europe, the Stoxx 50 index closed down 26.51 points, or 0.79%, at 3,330.25.
Spot gold closed at $1,929.23 an ounce, down $23.92, or 1.22 percent. On the day, spot gold hit as high as $1975.84 an ounce and as low as $1,909.98 an ounce, a move of more than $65.
COMEX gold futures for December delivery ended down 1.0 percent at $1,932.60 an ounce.
The threat of hurricane Laura earlier in the week pushed up oil prices, but given the new pandemic, hit suppresses demand, oil, and related products inventory are still high, the hurricane is expected to supply will not cause too big effect, oil prices on Thursday (August 27) closed down: American WTI crude oil futures ended October fell 35 cents, or 0.8%, to $43.04 a barrel. Brent crude for November delivery fell 56 cents, or 1.2 percent, to $45.60 a barrel.