Today we have to contemplate whether consumer confidence, that is the public’s “attitude” toward cutting loose and stoking the fires of higher spending, is an idea or a reality.

Gold Struggles Because Of Higher Dollar But Does Move Higher

There was a fairly important data release today that affected markets, although it will probably take another day before it is completely absorbed.

It seemed like business as usual today in the various markets that make the world go ´round.

The U.S. dollar was certainly stronger, although, except against the yen and Swiss franc – major haven currencies, there was nothing terribly unusual in the uptick. The greenback was up versus the yen by 1.35% and versus the franc by 1.20%.

Just as nature abhors a vacuum, investors abhor uncertainty. That is what is driving the market this week as we (still) await Fed chair Janet Yellen’s speech at the Jackson Hole Economic Policy Symposium.

For the record, here is a brief description of the symposium, taken from the website of the Federal Reserve Bank of Kansas City:

Fed Chairwoman Janet Yellen’s speech in front of important central bank executives from around the world is fast approaching. The long shadow of Friday’s address at Jackson Hole prompted gold investors to move off the sideline and, unfortunately, do some selling.

Two key releases of data are the true underlying fundamentals driving markets today. Certainly another little upward bump in the price of oil has helped stimulate U.S. equities, but it is the data that really counts.

Gold is down in afternoon trading by about 0.20%. Silver is much weaker, down over 2.00, on lack of industrial demand.

Flat as a pancake? Flat as a board? Flat as… markets at the end of August.

While we have to take seriously any statement from Federal Reserve regional bank presidents, not all comments are equal because not all Fed presidents are equal.

It’s best to start with U.S. dollar weakness today because it has affected most other markets. The greenback is down against the euro, yen, British pound and Swiss franc. The dollar is sliding because of a thousand small cuts to its strength rather than some large crisis of confidence.

It’s not unusual to get a bit of a whipsaw effect on the day of the release of minutes from the Federal Open Market Committee meeting. Many who were betting one way or another suddenly shift to the diametrically opposite positions. And then they possibly shift back as volatility increases and traders take advantage.