Analysts at Danske Bank suggest that today is the day theye've waiting for all week with both ECB President Mario Draghi and Fed President Janet Yellen speaking at the Jackson Hole Symposium.
Key Quotes
“Yellen will speak at 16: 00 CET on the subject of financial stability. It will be interesting to hear her thoughts on the how monetary policy plays a role in this. While full employment and inflation at 2% are the Fed's main objectives, financial stability can play a role too. If she gives any policy signals, we expect her to mirror Fed vice President Bill Dudley's comments last week that another rate hike is warranted this year if the economy holds up. If so, it could be interpreted a bit on the hawkish side given the market is pricing in only a third of a likelihood of a hike by end-year.”
“Tonight focus will turn to Mario Draghi, due to speak at 21:00 CET. We expect him to lean on the dovish side as the euro strength has challenged the ECB in getting inflation higher and is causing some concern within the ECB, according to the minutes from the previous meeting. He may refrain from giving any signals on tapering as signalled by a recent Reuters' story that quoted two ECB sources saying he would not be giving any new policy signals but await the tapering discussion in the ECB Council in the autumn.”
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