Jackson Hole: Draghi and Yellen amongst market movers today – Danske Bank

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.