This could be another big week for king dollar as all attention falls on Friday’s nonfarm payroll report.

After receiving fresh inspiration from Fed hawks last week, the greenback could charge higher if the pending US jobs data ticks all the boxes for more aggressive rate hikes. Alternatively, bulls may be humbled if the data fails to meet expectations. Whatever the outcome on Friday, it may be wise to brace for explosive levels of volatility, especially in the FX space.

Global equity bulls lingered in the vicinity on Tuesday as market sentiment stabilized following the Fed induced sell-off last Friday. Stocks in Europe flashed green while US futures rallied thanks to the risk-on mood. Although investors seem to be digesting the Fed’s vow to tame soaring inflation, a sense of caution continues to linger in the air ahead of another busy week for financial markets.

At the start of this new trading week, spot gold has been dragged down to closer to the $1700 mark, although prices have trimmed losses at the time of writing.

Allow me to begin with an important note: this article was published before Fed Chair Jerome Powell is due to make his Jackson Hole speech later today (Friday, August 26th), which may trigger an almighty reaction across global financial markets.

Organised by the Kansas City Fed, this year’s Jackson Hole Economic Policy Symposium will kick off today (August 25th) through August 27th.

This annual event is held in Jackson Hole, Wyoming (hence, the name widely used by market participants to refer to such a pivotal event),which features some of the top officials from major central banks (e.g. US Federal Reserve, European Central Bank, Bank of England, etc.), as they discuss pressing issues that face the global economy.

Asian shares were painted red on Tuesday, tracking a heavy sell-off on Wall Street overnight as concerns over upcoming aggressive Fed hikes sapped risk sentiment. European shares took a beating in the previous session amid fears around the region’s energy crisis. Stocks are expected to open lower again this morning thanks to the negative sentiment and recession fears.

Shame on those who doubted the Dollar (at least of late).

The greenback has staged a recovery and is on a quest to revisit recent highs, as markets restore their bets for an ultra-hawkish Fed.

As a result, major G10 currencies are wilting under the weight of the resurgent buck:

It’s that time of the year people!

Hi folks,

Lukman is in the building!

It’s been another eventful week for financial markets with action across currency, commodity and stock markets.

Before we proceed, I know some of you are wondering what is going on here. Well, I have hijacked the Thursday 101 slot to share my thoughts and personal experiences with markets this week!

Sterling hijacked our attention on Wednesday after official data revealed that UK inflation hit double digits for the first time in 40 years!