So Much for the Summer Doldrums
This year, the higher volatility may start next week!
Share this:
Monday is a public holiday in the UK, and the following Monday is a public holiday in the US. Many people take vacation next week, as it is considered to be the “last week of summer”. Markets are traditionally slow during the last week of August, as many people gear up for the ensuing volatility to arrive as people return to their offices after Labor Day. This year, the higher volatility may start next week!
This week started the with much anticipation for today’s Jackson Hole speech by Fed’s Powell. As we wrote earlier, no one was expecting Trump’s tweet storm that sent the markets into a frenzy! And now we have the G-7 this weekend, where Trump surely will not be greeted well be his European counterparts. Many of the European leaders most likely will express their displeasure with the tariffs he has placed not only on China, but also on some European countries.
The DXY was not pleased with Trump’s tweets. It began to move slightly lower after Powell’s speech, however once Trump began trashing China, the DXY moved aggressively. DXY is currently holding support at the 61.8% retracement at 97.58 from August 9th low to todays highs.
Source: Tradingview, City Index
The EUR/USD has moved higher 100 pips on day from 1.1053 to 1.1153 and is currently holding below resistance at 1.1162. Next resistance level is 1.1179, the 61.8% retracement level from the August 6th highs to today’s lows.
Source: Tradingview, City Index
S&P 500 is down over 70 handles, breaking trendline support, and the Dow is down over 500 points. The equity markets were hit particularly hard by the tweets, as once again, investors are looking ahead to G-7 this weekend.
Source: Tradingview, City Index
Gold also moved much higher after the tweets to near 1528. Resistance is at recent highs at 1535 and support is 1508.75.
Source: Tradingview, City Index
With Trump’s twitching Twitter fingers, G-7 this weekend, low participation on Monday (because of the UK Holiday), AND the possibility of low participation all next week, make sure to be on high alert for increased risk of higher volatility during the last week in August!
Monday is a public holiday in the UK, and the following Monday is a public holiday in the US. Many people take vacation next week, as it is considered to be the “last week of summer”. Markets are traditionally slow during the last week of August, as many people gear up for the ensuing volatility to arrive as people return to their offices after Labor Day. This year, the higher volatility may start next week!
This week started the with much anticipation for today’s Jackson Hole speech by Fed’s Powell. As we wrote earlier, no one was expecting Trump’s tweet storm that sent the markets into a frenzy! And now we have the G-7 this weekend, where Trump surely will not be greeted well be his European counterparts. Many of the European leaders most likely will express their displeasure with the tariffs he has placed not only on China, but also on some European countries.
The DXY was not pleased with Trump’s tweets. It began to move slightly lower after Powell’s speech, however once Trump began trashing China, the DXY moved aggressively. DXY is currently holding support at the 61.8% retracement at 97.58 from August 9th low to todays highs.
Source: Tradingview, FOREX.com
The EUR/USD has moved higher 100 pips on day from 1.1053 to 1.1153 and is currently holding below resistance at 1.1162. Next resistance level is 1.1179, the 61.8% retracement level from the August 6th highs to today’s lows.
Source: Tradingview, FOREX.com
S&P 500 is down over 70 handles, breaking trendline support, and the Dow is down over 500 points. The equity markets were hit particularly hard by the tweets, as once again, investors are looking ahead to G-7 this weekend.
Source: Tradingview, FOREX.com
Gold also moved much higher after the tweets to near 1528. Resistance is at recent highs at 1535 and support is 1508.75.
Source: Tradingview, FOREX.com
With Trump’s twitching Twitter fingers, G-7 this weekend, low participation on Monday (because of the UK Holiday), AND the possibility of low participation all next week, make sure to be on high alert for increased risk of higher volatility during the last week in August!
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Japanese Yen Forecast: USD/JPY 4% Rally Challenges Post-Intervention Downtrend 9 24 2026
USD/JPY momentum has shifted sharply higher, putting a major resistance confluence in focus as U.S. and Japanese event risk builds.
Oil Quietly Hands the Fed a Reason to Stay Hawkish
Oil prices and the U.S. dollar are both on the front foot as elevated energy costs feed Fed warnings that inflation may prove sticky.
Gold forecast: XAU/USD could take a larger dive after the big rise in yields
Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.