Markets wait for Nvidia and Jackson Hole – Dollar still under pressure

Frank Walbaum

Important News this week

Wed, 26th, 03:30 CET AU Consumer Price Index.

Wed, 26th, 14:30 CET US Core PCE Price Index.

Thu, 27th US Jackson Hole Symposium Begins.

Fri, 28th, 14:30 CET CA Gross Domestic Product.

Markets wait for Nvidia and Jackson Hole – Dollar still under pressure

The US Dollar remains weak, while markets are moving mostly sideways without a clear directional signal. Equities are consolidating after their recent gains, with traders increasingly focused on Nvidia earnings on Wednesday, which could provide a major catalyst for the Nasdaq and broader risk sentiment.
Crypto remains notably strong. Bitcoin and Ethereum are both trading above their 50-MA on the weekly chart, an important technical improvement. After the strong bullish week recently, continued price action above these levels could support another leg higher. The DXY remains near the lower end of its longer-term range. Further Dollar weakness is possible, although the broader support zone remains clearly visible and could attract buyers.

Market talk

The second half of the week could bring significantly more volatility. Jackson Hole starts Thursday, putting the Federal Reserve and its policy outlook back in focus. Any shift in expectations around rates could move the Dollar, equities and metals simultaneously.
Until then, Nvidia earnings may provide the first major test of the current risk-on backdrop. Strong results and guidance could push tech stocks higher and potentially pull the broader indices out of their current sideways pattern. A disappointment could have the opposite effect, particularly with markets already trading at elevated levels.

Tendencies in the markets

Equities mixed, USD weak, BTC strong, ETH strong, oil positive, metals strong, JPY weak.

Author

Frank Walbaum

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