A Busy Week For Trading: Jackson Hole Summit, US GDP Numbers And PCE Inflation

A Busy Week For Trading: Jackson Hole Summit, US GDP Numbers And PCE Inflation

Last week, the U.S. dollar index surged to a one-month high as Federal Reserve officials spoke of the need for further rate hikes, and investors reevaluated Wednesday's minutes from the U.S. central bank's July meeting as being more hawkish than originally thought.

Fed minutes showed that while the size of the September rate hike is still in play policymakers felt there was little evidence so far that inflation pressures are subsiding

St. Louis Fed President James Bullard said he is leaning toward supporting a third straight 75-basis-point interest rate hike in September.

All eyes will be on Fed Powell’s speech in Jackson Hole, Wyoming on Friday for possible answers about how high U.S. interest rates may go and how long they will need to stay at elevated levels to bring inflation back under control

this week’s calendar features U.S. data on GDP growth, Durable Good Orders, and PCE inflation.

US GDP number will be published on Thursday. The second-quarter gross domestic product is expected to show a contraction of 0.8%.

Core Durable Goods Orders, excluding transportation, are expected to come out at 0.2% in July.

The US will publish updates on consumer spending and the Federal Reserve’s preferred inflation gauge on Friday, which will give fresh insight into the strength of the economy.

The yearly PCE price index advanced 6.8%, the largest increase since January 1982