Markets wait for direction as Jackson Hole keeps traders cautious

Frank Walbaum

Important news this week

Fri, 28th, 14:30 CET CA Gross Domestic Product
Fri, 28th, 16:00 CET US Kevin Warsh Speech
Fri, 28th US Jackson Hole Symposium

Markets wait for direction as Jackson Hole keeps traders cautious

Markets remain stuck without a clear direction as the week comes to an end. The US Dollar is showing slight strength, but the move lacks conviction. The Nasdaq is also struggling to build momentum following Nvidia's strong earnings, suggesting investors may already have priced in much of the positive news.
Oil has given back some of its recent gains and is moving lower again, while the Japanese Yen remains remarkably quiet with almost no movement across JPY pairs. Crypto is similarly mixed: Bitcoin and most major coins are consolidating, while some altcoins, particularly Solana, are showing relative strength.

Market talk

The lack of a clear move suggests markets are waiting for the next major catalyst. With Jackson Hole underway, attention remains firmly on central-bank communication and the outlook for US interest rates. Today's comments from Kevin Warsh will be watched closely for any clues on monetary policy and the Dollar.

If the Fed messaging turns dovish, the recent Dollar weakness could resume and provide fresh support for equities, metals and crypto. A more hawkish tone could have the opposite effect and reinforce the current cautious positioning. For now, traders appear reluctant to make major bets ahead of the next signal.

Tendencies in the markets

Equities mixed, USD stronger, crypto sideways, oil sideways, XAU lower, XAG positive, JPY sideways.

Author

Frank Walbaum

GBP/USD remains capped at 1.3600, awaits key US event risks

GBP/USD is consolidating in Friday's European trading after facing rejection at 1.3600 earlier on. Traders remain on the sidelines and refrain from placing fresh bets on the major ahead of the critical US Nonfarm Payrolls benchmark revision and Fed Chair Warsh's debut at the Jackson Hole Symposium. Both events could ramp up market volatility.

EUR/USD hovers around 1.1650 ahead of NFP revision, Warsh

EUR/USD is treading water at around 1.1650 in the European session on Friday. The pair faces headwinds as the US Dollar clings to its recent recovery ahead of the US Nonfarm Payrolls benchmark revision and Fed Chair Warsh's Jackson Hole speech. However, the downside appears cushioned by hawkish ECB expectations.

Gold holds gains above $4,600 as bullish bias prevails

Gold extends its gains for the second successive day, trading around $4,610 during the European hours. The price of the precious metal is remaining within the ascending channel pattern, suggesting a persistent bullish bias. The XAU/USD pair is retaining a constructive bullish bias as spot holds above both the nine-period and 50-period EMAs, keeping the short- and medium-term trends aligned to the upside.

Hyperliquid rally stretches thin amid treasury growth, CFTC innovation push

Hyperliquid (HYPE) is down 2% on Friday after reaching a record high of 86.75 the previous day. Nasdaq-listed Hyperliquid Strategies Inc raised almost $650 million in an equity deal to increase its HYPE holding to 29.3 million tokens. Hyperliquid is also pushing to expand its perpetual futures markets in the US.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September. The Jackson Hole symposium, held from August 27 to 29, has the official theme “Financial Innovation: Implications for Payments and Policy.”

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.