By: Mahmoud Gamal 

Mubasher: Global markets are anticipating the speech of the Federal Reserve chair Janet Yellen in the annual Jackson Hole central banking conference on Friday.

The speech will be closely watched for hints about US monetary policy and the path of interest rates.

US positive data showed that an interest rate rise is possible in September, but no officials confirmed that information so investors are awaiting Yellen’s speech to clear up their confusion, analysts told Mubasher.

Yellen is expected to deliver a stronger signal about the likelihood of rate hike in the near future, analyst Michael Zacharias said.

The current interest rate, which has been at the low level of 0.5% for several years, may be a good opportunity for a rise to 0.75% and may be even 1% before the end of the year, according to global market analyst at Amana Capital Raed Al-Khedr.

Liquidity will be directed to currencies and metals once Yellen delivers her speech, financial expert Mohammed Al Shammari noted.

Translated by: Julian Nabil