The last week has been an easy week for market movers; the markets moved for real from the second half of the week waiting for the GDP post Brexit of the United Kingdom and Yellen’s speech in Jackson Hole.
The last preliminary data on the Gross Domestic Product of the United Kingdom are in accordance both with expectations and the previous survey results.
On an annual basis, the GDP of Great Britain came in the second quarter of 2016 to + 2,2%. On a quarterly basis, however, the result marked + 0,6%.
The euro-sterling exchange rate came from a week of sharp decline, which has leaded it from closing last Friday at 0,865.
The price has been recovering the following day, with the euro that attempted to curb the decline and the US dollar back to being weak.
The pound-dollar exchange rate has benefited from the UK GDP data and remained above 1,316 after share it out earlier this week, giving credibility to a rise that wants, during the last period, a recovery of the pound against other major currencies.
Before the opening of the Jackson Hole symposium, two US market movers have affected investors: the PMI index of services and initial claims for US unemployment benefits.
The PMI index of the services calculated by Markit in the United States declined in August. It dropped to 50,9, against the analysts estimates at 52,0 and the previous figure of 51,4.
Composite PMI index of American service marked a decline to 51,5 from the previous 51,8.
Even the requests for unemployment benefits for this week were down. They declined to 261.000, despite predictions to 265 thousand, and better than the previous figure at 262.000.
On Friday, investors were all focused on the speech of Janet Yellen to the symposium in Jackson Hole. The president of the US central bank, together with the presidents of other major central banks have to take care of how to get out of the huge black hole inside the monetary policy caused by the financial crisis of 2008.
In Jackson Hole they discussed on how to rebuild the political and monetary system, in particular of low and negative interest rates in developed countries, the fragility of the emerging economies and the lack of recovery in the Euro zone.
Janet Yellen, Federal Reserve chairman, has confirmed that the United States needs a rise in interest rates given the economic situation in recent months. The star-and-stripe country, in fact, seems to be close to achieving the employment and inflation targets set by the Fed.
Immediately after Yellen speech, the US dollar has quickly jumped up and then begun its descent due to the absence of a clear reference to a rise in September.
Also European stocks and Wall Street celebrated at the words of Yellen, with the major lists that have marked all positive sign.
The most important market movers scheduled for this week concern the dollar that will still be the undisputed leader in the Forex market, among the scheduled speeches of some Fed members and the Non Farm payrolls data.
Regarding Europe, there will be data on inflation in Germany and in the Euro zone, surrounded by the series of market movers of the PMI Markit indices for the major world economies.