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US Wakes Up to Uncertain Recovery
The US index finished indecisively yesterday as it failed to close above the 93 handle again.
The first day of the Jackson Hole Symposium concluded with the Federal Reserve adopting a new strategy for inflation. The central bank will now target an average of 2% inflation, rather than a 2% fixed goal. This confirmed expectations that the US central bank will keep interest rates at low levels for years to come.
Initial jobless claims were positive as the US recorded 93K fewer claims than the previous month. However, the figure still remains around the 1-million mark indicating a sluggish resurgence ahead for the US economy.
Greenback Fails to Penetrate Rivals
Euro and pound finished relatively flat in yesterday’s session as day one of the Jackson Hole summit ended.
Inflation news coming out of the event created volatility in the EURUSD and GBPUSD pairs. However, this was short-lived as retracements soon kicked in on risk sentiment.
The euro was unable t...
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