19.08.201700:56 Forex Analysis & Reviews: Markets Focus on Yellen's appearance at Jackson Hole next week

On the world markets, there is a continuation of the "lateral" trend, which is caused by a number of reasons. The most important of which is the remaining uncertainty whether the Fed will further raise rates.

Comments of Fed officials also continues to reveal, with cautious statements regarding what, perhaps, should be slowed down with the cycle of lifting interest rates. So, on Thursday, the President of the Federal Reserve Bank of Dallas R. Kaplan again stated that he will support the third increase in interest rates this year, but only if inflation accelerates.

"We have the opportunity to show patience (in the matter of raising rates), so first I would like to see evidence of accelerating annual inflation towards the Fed's target level of 2%," he said. (DJ Newswires)

"Dovish officials " Kashkari, Evans and Bullard have already talked about this topic. The markets can ignore their statements in general, since their position has long been clear, however the comments have penetrated the doubts of other members of the Fed, and now Mester and Kaplan already set up a negative wave. The only one who confirmed his view from the speakers recently was the head of the Federal Reserve Bank of New York, W. Dudley, who two days ago confirmed that he expects to continue raising rates.

Such uncertainty or, more precisely, the divide of opinions of the officials of the Federal Reserve, frightens the markets, which leads to a sharp increase or decrease in assets, but they generally maintain a lateral trend.

Today, economic data, which are considered to be very important by markets due to its impact, will not be published. The focus of the market was on the speech of Fed Chairman J. Yellen in Jackson Hole, which will be held next week. Investors expect a comment on the prospects of further interest rate hikes, and they also hope to hear details about the upcoming start of a reduction in the balance sheet.

We, unlike such sentiments, believe that Yellen will most likely be restrained and will not give any definite signals, although she can hint more at expressing her personal position.

Forecast of the day:

EURUSD is trading in the range of 1.1685-1.1790. Probably, today the pair will remain in it. Given that the ECB is unlikely to change its monetary policy, it is expected that the price will fall further, so it advised to adhere to the tactic of selling the pair on growth from 1.1790-1.1800 with a probable local target of 1.1685.

The pair USDJPY continues to fall against the backdrop of the "weakness" of the dollar and positive data on the Japanese economy. Surpassing the price of the mark 108.75 will cause its decline to 108.00.