Jackson Hole: Leave the fireworks at home? - TDS

With both ECB President Draghi and Fed Chair Yellen making remarks at the Jackson Hole Symposium today, markets will be paying close attention, according to analysts at TDS.

Key Quotes

“This year’s theme is “Fostering a Dynamic Global Economy” and a full schedule of the event will only be available at 8pm EDT on August 23. It is worth highlighting that this year’s Symposium will represent a sea change; this will be the first Symposium in a long time where remarks on tightening policy will be more closely watched than those on further easing. This may in turn encourage Draghi and Yellen to shed little new light on their projected path for policy tightening.” 

“The July FOMC minutes released suggested that while the Fed has continued to debate the low levels of inflation, “most participants thought that the framework remained valid.” This suggests that ongoing labor market tightening should continue to place upward pressure on inflation, keeping the Fed on a tightening path. Yellen may therefore continue to hint at an impending announcement of balance sheet runoff in September, but may keep mum on the projected path of future rate hikes.” 

“There has also been considerable focus on ECB policy ever since Draghi’s more hawkish remarks at Sintra. Media reports have nevertheless suggested that Draghi is unlikely to offer strong guidance on the ECB’s tightening path at Jackson Hole. We believe that the ECB will announce a tapering of QE in October, leading bunds to underperform Treasuries and tightening the particularly wide 10yr Treasury-bund spread further.”  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stabilizing as US coronavirus cases continue to climb

EUR/USD is trading around 1.1250, pressured amid concerns about the spread of coronavirus in the US. Traders are digesting the upbeat Non-Farm Payrolls figures already out ahead of the long US weekend. 


GBP/USD attempting a bounce amid thin liquidity

GBP/USD is closer to 1.25, off the lows. Top-level EU-UK Brexit talks have been postponed until next week amid disagreements. The UK is continuing to reopen while US coronavirus cases are surging. 


Bitcoin must endorse the time of Ethereum has come

The crypto market remains in a choke point, and after signs of a possible upward shift yesterday, the market was once again disappointed to see Bitcoin in the low range of the $8900 to $9000 choke point.

Read more

Gold: There is a bearish signal on the 4-hour chart

Price action has been slow on Friday due to the bank holiday in the US as the nation celebrates independence day. This week has been an interesting one as there has been some good economic data but some very bad coronavirus news in the US. 

Gold News

S&P 500: Futures struggle to refresh two-week top

S&P 500 Futures prints mild loss of 0.10% while declining to 3,126 during the initial hour of Tokyo session on Friday. In doing so, the risk barometer fails to extend the previous four-day winning streak.

Read more