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Price action was rather choppy during today’s morning London, likely because of the Jackson Hole Symposium. The yen was on the move, though, since it got trounced across the board, likely because risk sentiment in Europe flipped back to risk-on.

The Greenback is also noteworthy since it returned some of its gains from the earlier session and was the second worst-performing currency of the morning London session.

  • Second estimate for Q2 U.K. GDP q/q: no change from +0.3% as expected
  • Second estimate for Q2 U.K. GDP y/y: no change from +1.7% as expected
  • U.K. finance mortgage approvals: 41.6K vs. 40.4K previous
  • CBI’s U.K. realized sales: -10 vs. 15 expected, 22 previous
  • Jackson Hole Symposium kicks off today

Major Events/Reports

Jackson Hole Symposium begins today

So it begins. The highly anticipated Jackson Hole Symposium kicks off today.

ECB Overlord Draghi and Fed Head Yellen are not scheduled to give their speeches until tomorrow, but keep on your toes just in case some policy maker gets some media time and says something unexpected.

By the way, if you have no idea what this Jackson Hole thing is all about, then you can get up to speed by reading up on Forex Gump’s write-up on that here.

Second estimate for Q2 U.K. GDP

The second estimate for Q2 U.K. GDP growth was released earlier today and it affirmed Q2 GDP growth at 0.3% quarter-on-quarter and 1.7% year-on-year, unchanged from the first estimate.

This version of the GDP report has a GDP breakdown using the expenditure approach.

And looking at the details, household spending added 0.1% to quarterly GDP growth, government spending and investment added another 0.1%, and gross capital formation accounted for the remaining 0.1%.

As for the other GDP components, they had negligible contributions to GDP growth in Q2.

Net trade, in particular, did not contribute to GDP growth because the positive contribution from the 0.7% increase in exports was cancelled out by negative contribution from the 0.7% increase in imports.

Sentiment switches to risk-on

Risk sentiment in Europe has been swinging back and forth between risk-off and risk-on this week.

And in today’s morning London session, risk sentiment switched back to risk-on since the major European equity indices were in the green again after getting a good thrashing yesterday.

And according to market analysts, the return of risk appetite during today’s session was due to the strong performance of cyclical stocks amid positive earnings reports.

  • The pan-European FTSEurofirst 300 was up by 0.48% to 1,476.25
  • Germany’s DAX was up by 0.38% to 12,220.50
  • The blue-chip Euro Stoxx 50 was up by 0.45% to 3,455.50

Returning appetite for risk also propped up U.S. equity futures.

  • S&P 500 futures were up by 0.19 to 2,446.25
  • Nasdaq futures were up by 0.29% to 5,865.12

Major Market Mover(s):


The safe-haven yen had a tough time and was the worst-performing currency of the morning London session, very likely because of the prevalence of risk appetite during the course of the session.

USD/JPY was up by 6 pips (+0.05%) to 109.35, CAD/JPY was up by 19 pips (+0.22%) to 87.26, CHF/JPY was up by 33 pips (+0.29%) to 113.42


The Greenback was a winner during the earlier session. However, the Greenback had a reversal of fortune when the morning London session rolled around, and so the Greenback ended up returning most of its gains and even ended up as the second worst-performing currency of the session.

There were no apparent catalysts, but since the Jackson Hole Symposium is kicking off today, it’s highly likely that Greenback bulls from earlier were just taking profits off the table.

GBP/USD was up by 29 pips (+0.23%) to 1.2825, AUD/USD was up by 26 pips (+0.33%) to 0.7896, NZD/USD was up by 23 pips (+0.32%) to 0.7219

Watch Out For:

  • 12:30 pm GMT: Canadian corporate profits (-7.4% previous)
  • 12:30 pm GMT: U.S. initial jobless claims (237K expected, 232K previous)
  • 2:00 pm GMT: U.S. existing home sales (5.55M expected, 5.52M previous)
  • 2:00 pm GMT: U.S. mortgage delinquencies (4.71% previous)
  • Jackson Hole Symposium begins; read Forex Gump’s write-up on that here