European indices end the day in green. On the continent, Spain's IBEX35 and Italy's ITA40 grew the most, by over 1%. The Swiss index and German DAX ended similarly. The domestic WIG20 grew by only 0.5%
American indices sharply up, with Russell 2000 leading with over 2.9% upward movement. Meanwhile, the indices reduced gains and erased most of the additional positive movement related to Powell's speech at Jackson Hole
Powell, during his speech at Jackson Hole, confirmed readiness to start interest rate cuts, stating that the time has come to adjust policy
According to Powell, the balance of risk factors has changed, inflation has significantly decreased, and the Fed doesn't want to allow further cooling in the job market
At the same time, Powell doesn't indicate a risk of economic collapse
The pace of interest rate cuts in the US, their number, and size will depend on data
Other bankers during the Jackson Hole symposium pointed to the need for interest rate cuts (Harker, Bostic). Bailey from BoE indicated that the fight against inflation is not over
As a result, we observed strong increases in GBPUSD. The pair rose above July 2023 peaks and reached its highest level since April 2022
The USDPLN pair fell to its lowest level in 3 years
The US dollar is approaching the 2023 low. Gold is recovering yesterday's losses and trying to close near the peaks
Market confidence in further interest rate cuts in the eurozone is also growing, which is associated with the continued weak state of the European economy
Peloton shares are up more than 5% after yesterday's impressive 35% increase. Cameco gains 6% due to lowered uranium production outlook in Kazakhstan
WTI breaks out of support around $72.5 per barrel, rising over 2.5% today and approaching $75 per barrel. Oil reacts positively to announcements of interest rate cuts and once again prices in the decrease in oil inventories presented by the DOE
Bitcoin again moved past the 61,500 USD zone and the 50 SMA with a daily increase of over 2.6%
New home sales in the US increased by over 10% for July to 739,000 from 617,000, indicating that the real estate market remains resilient to high interest rates
Retail sales in Canada fell by 0.3% m/m, in line with expectations, but core sales unexpectedly rose by 0.3% m/m. USDCAD fell significantly to the level of 1.3500