Forex Today: Caution trading persists ahead of UK GDP, Jackson Hole

A data-light quiet Asian session today, with most trading stuck in tight trading ranges amid a typical scenario witnessed ahead of a highly-influential macro event, this time being the 2-day Jackson Hole Symposium commencing later in the American session. Broad based US dollar demand re-emerged as markets sought to safety in the world’s reserve currency, while the Kiwi was unimpressed by upbeat NZ trade data, which showed a surprise trade surplus. Despite moderate risk-aversion, the Yen slipped across the board on the back of a short-covering bounce seen in USD/JPY back beyond 109 handle.

Main topics in Asia

ECB’s Hansson: Euro's gains so far are not `a big change'

The European Central Bank (ECB) policy maker and Estonian central bank chief Ardo Hansson crossed the wires late-Wednesday, via Bloomberg, speaking on the recent Euro appreciation in  an interview in his office in Tallinn.

NZ: Surprise trade surplus of $85 million for July - ANZ

Con Williams, Agri Economist at ANZ, explains that a trade surplus of $85 million was only the 11th surplus for a July month since 1960 for NZ economy and was the first July surplus since 2012.  

Gold - Bullish move stalls above $1290 ahead of Jackson Hole

Gold bulls are again struggling to push through the key resistance zone of $1290-1300, despite Wednesday’s sharp rally from the low of $1282. 

China’s MOFCOM: China will deepen reforms over its overseas investment policies

China’s Commerce Ministry (MOFCOM) out with the following headlines:

Key Focus ahead

Looking ahead, the main risk event for today and tomorrow remains the Jack Hole Symposium, with the speeches from ECB Chief Draghi and Fed Chair Yellen eagerly awaited on possible changes to their respective monetary policy stance, which could have major impact on the market volatility and fx moves.

In the meantime, the immediate focus now remains on the UK’s second estimate to the Q2 GDP numbers and prelim business investment data due out in Europe, while from the US docket, we have the weekly jobless  claims and existing home sales data to offer some trading impetus in the day ahead.

EUR/USD: Range-play to continue ahead of ECB’s Draghi at Jackson Hole

The bears continue to guard the key upside barrier near 1.1830 region, leaving EUR/USD confined within almost 80-pips tight range so far this week, as investors await ECB President Draghi’s speech at the Jackson Hole Symposium for the next direction.

GBP/USD: Bearish momentum to extend on UK Q2 GDP

The GBP/USD pair extends its downward trajectory into a third day today, having refreshed eight-week lows at 1.2778 last hour, as looming Brexit concerns combined with resurgent USD demand weighs down on the spot.

UK: Second estimate Q2 GDP preview – HSBC

The HSBC research team published a brief preview of the UK’s second estimate of Q2 GDP report, which will be reported at 0830GMT later today.

Jackson Hole Preview: EUR/USD key levels: 1.20 and 1.16, Cable looks heavy

EUR/USD witnessed a bullish descending triangle breakout on Monday, but is struggling to extend gains beyond 1.1830 levels as many in the markets are expecting hawkish sound bites from Fed’s Yellen.

How will Yellen and Draghi 'perform' at the Jackson Hole?

It's quite understandable why the markets are so fixated on this week's Jackson Hole when you look back across the money flows of late and you'll see just how fickle markets are this month.