The financial markets are staying in tight range as markets are waiting for rate clues from Fed chair Janet Yellen in her speech in Jackson Hole symposium today. DJIA closed -0.18% lower at 18448.41 overnight, slightly below last week's low of 18468.68. S&P 500 closed down -0.14% at 2172.47, above last week's low at 2168.5. 10 year yield ended at 1.577, well inside recent range of 1.52/58. Gold is notably lower this week, down from around 1350 to current 1325 but stays well above 1300 handle. Crude oil also stays in range of 46.42/48.40. In the currency markets, Sterling is generally higher this week a long with commodity currencies. Dollar stays mixed.
In US, Dallas Fed president Rob Kaplan said yesterday that "the case for removing accommodation is strengthening" and that could happen in the "not-too-distant future". Kansas City Fed Esther George said that there was progress made in the economy "nearing full employment, inflation is low and stable" and "we can remove some of that accommodation, the process of normalization of interest rates". There are speculations that based on other recent hawkish Fedspeaks, Yellen might signal that Fed is ready for another hike and paint an optimistic outlook.
In Japan, national CPI core dropped -0.5% yoy in July, below expectation of -0.4% yoy. That's the fifth straight monthly fall in prices. Tokyo CPI core dropped -0.4% yoy in August, in line with consensus. The weak inflation data adds to speculation that BoJ would expand easing again in September. BoJ currently forecast inflation to reach 2% target some time in the fiscal year ending March 2018. But there are criticisms that the central bank has exhausted all tools already while remaining distant with the inflation target.
Elsewhere, Germany will release Gfk consumer confidence European session. Eurozone will release M3 money supply. UK will release Q2 GDP revision and index of services. US will release trade balance and GDP revision.