As the month winds to a close for UK investors, and news flow dries up around the globe, most traders have taken the chance to trim positions and book gains after strong rallies in recent sessions. On a day of little news, there is scant reason to chase stocks higher, but that does not mean the bounce has come to an end. September usually sees the start of a bumper season for equities, so bullishness should grow as the new month gets underway. Miners have led the way higher in London, with a smattering of oil stocks that have found some support following yesterday’s spike in crude prices.
As we look to next week, attention will remain fixed on what China and the US have to offer. PMI figures from the former will be crucial, especially since we get both the official and the private sector assessment of the situation, while non-farms on Friday will garner the usual attention. The weekend’s Jackson Hole summit should not unduly disturb matters, especially given that September is now practically a non-starter for rate hikes.
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Editors’ Picks
EUR/USD holds above 1.0700 after German inflation data
EUR/USD trades modestly higher on the day above 1.0700. The data from Germany showed that the annual HICP inflation edged higher to 2.4% in April. This reading came in above the market expectation of 2.3% and helped the Euro hold its ground.
USD/JPY recovers above 156.00 following suspected intervention
USD/JPY recovers ground and trades above 156.00 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, Federal Reserve's policy decisions and US employment data could trigger the next big action.
Gold holds steady above $2,330 to start the week
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation.
Week ahead: FOMC and jobs data in sight
May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.