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Jackson Hole

Powell Announced Dovish Shift to Fed’s Monetary Policy, Targeting Averaging Inflation and shortfall of Maximum Employment

At the annual Jackson Hole Symposium, Fed Chair Powell briefed the market on the results of the Fed's strategic review of its monetary policy strategy. Powell announced the new approach to deal with price stability and maximum employment, the dual mandate of the Fed monetary policy. The Fed will...

Factors Supporting Gold Price Remain as ETFs Add Holdings and Low Yields Persist

Gold price has corrected about -7% over the past weeks, after making a record high of US$ 2060/oz earlier in the month. While further weakness appears likely, we remain bullish on the yellow metal as factors driving its price higher, e.g. low yields, expansionary monetary policy, etc, remain intact....

Powell Speech Awaited After Fed Hawks Come Out, Pound Jumps On Brexit Hopes

Markets await Powell's Jackson Hole speech amid signs of resistance to further rate cuts US dollar holds firm as Treasury yields extend rebound; gold drifts lower Pound swings higher after Merkel and Macron boost Johnson's chances of backstop changes All eyes on Jackson Hole Traders' focus will centre on Fed...

Jackson Hole & G 7 Meeting | FTSE 100 Worst Monthly Performance Since 2015

The UK's FTSE 100 index is poised to have the worst monthly performance since 2015 , thanks to Boris Johnson- the UK's Prime Minister. The index is down over 6% this month. There is no light at the end of Brexit tunnel and the person in charge of Brexit...

The Week Ahead: G7 And Jackson Hole Wind Down, US GDP And German IFO

Monday 26th August German IFO Business Sentiment US Durable goods orders, Dallas Fed Manufacturing Tuesday 27th August German GDP French business and consumer and sentiment US house prices, Richmond Fed manufacturing index, Wednesday 28th August Australian construction work German consumer sentiment Eurozone money supply Thursday 29th August New Zealand business sentiment Australian Capex Japanese consumer confidence Europe: French final GDP, German unemployment and inflation,...

FOMC Minutes Explained the Rationale for Precautionary Rate Cut. Further Reduction Likely in Coming Months

The FOMC minutes for the July meeting explained that the key reasons for the rate cut are slowdown in global economic outlook and subdued US inflation. An insurance reduction was needed to prevent these factors from dragging US economy. Yet, the decision to lower the Fed funds rate, by...

Markets Full Of Hope, EUR Stands Still

Markets full of hope ahead of Jackson Hole Symposium. After a solid start into the week, equity markets took a quick dive yesterday as tensions keep mountint ahead of Jerome Powell speech on Friday at the Jackson Hole Symposium. On Tuesday, E-mini S&P500 futures tumbled on the 2,932 resistance level...

USD Weaker Ahead Of Jackson Hole Symposium

The USD weakened against a number of other currencies yesterday, as the US Index retreated from yesterday’s highs. Analysts tend to note that the USD weakened due to a slipping of the US yields and ahead of the release of the Fed’s minutes later today. The weakening was also...

US Open – Choppy Until Jackson Hole, Oil, Gold, Home Depot

US equities will likely get little direction from a very quiet European morning. Markets remain fixated on the Jackson Hole speeches at the end of the week and demand for safer assets will likely remain strong until we have clarity on how the Fed will respond to growing risks...

Markets Steady As Traders Eye Jackson Hole

It's been a relatively flat start to trading on Tuesday as it seems the Jackson Hole waiting game is underway. Once again we're in a situation whereby the week hangs on what Jerome Powell says about interest rates and whether he can live up to the huge expectations set by...

Powell Signals He Would be More Cautious in Face of Uncertainty

Weaker USD, lower Treasury yields, higher equities… Market reactions showed that Fed’s chair Jerome Powell’s speech at Jackson Hole symposium was interpreted as “dovish". Discussing about “Monetary Policy in a Changing Economy”, Powell revealed the challenges of navigating the stars – u*, the natural rate of unemployment, r*, the neutral...

Sunset Market Commentary

Markets: Global core bonds treaded water in an uneventful European trading session. Dynamics changed in US dealings. Core bonds started losing ground with US Treasuries underperforming German Bunds anticipating on Fed Chair Powell’s speech in Jackson Hole and reacting to strong US durable goods orders. The proxy for investments in...

Dollar weakens on Fed Powell, but markets misinterpret him

Dollar drops sharply as Fed chair Jerome Powell delivers his speech at the Jackson Hole Symposium. The markets seem to be responding to Powell's comment that "we have seen no clear sign of an acceleration above 2 percent" and "there does not seem to be an elevated risk of...

Dollar Loses Ground ahead of Powell’s Jackson Hole Speech; Oil Rallies

Here are the latest developments in global markets: FOREX: Dollar/yen pulled back below a two-week high of 111.48 reached early today, falling to 111.30, near Thursday’s close price ahead of Powell’s Jackson Hole speech. The dollar index, which measures the dollar’s strength against six major currencies was also in a...

Quiet Market Before Powell Jackson Hole Speech

There is a lower level of market volatility at the end of the week, with investors on stand-by mode before Federal Reserve Chair Jerome Powell speaks at Jackson Hole later today. Traders are probably on the edge of their seats wondering whether Powell will respond at all to the criticism...

Dollar Posts Modest Losses Ahead Of Powell Speech, Possibility Of No-Deal Brexit Hurts Pound

Here are the latest developments in global markets: FOREX: The dollar was 0.2% down against six major currencies on Friday. Fed chief Powell’s speech at the Jackson Hole summit later today may act as the short-term driver determining positioning on the greenback. STOCKS: The Dow Jones, S&P 500 and Nasdaq Composite...

Oil Prices Continue To Rise With Brent Moving Above USD75/bbl

Market movers today The Jackson Hole symposium started last night under the headline ‘Changing Market Structure and Implication s for Monetary Policy'. Fed Governor Jerome Powell will speak today on ‘Monetary Policy in a Changing Economy' at 16.00 CEST. We do not expect any change to the recent message from...

Australian Dollar Higher on ScoMo Win, Powell in Jackson Hole Watched

Australia Dollar recovers broadly today as markets cheered Scott Morrison's win in the Liberal Party's leadership challenge. But upside is so far limited. New Zealand Dollar is trading as the second strongest one for today so far, followed by Dollar. On the other hand, Yen is under broad based...

Is EUR/USD Rolling Over Ahead Of Powell?

As we noted in the recap to yesterday's FOMC minutes , this week's marquee event for the US economy was always going to be Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium, which takes place at 10:00am ET. Especially after central bank policymakers expressed numerous concerns in the...

Dollar Broadly Higher As Aussie Remains Under Pressure, ECB Minutes Due

Here are the latest developments in global markets: FOREX: The dollar’s index versus a basket of currencies continued to trade higher on Thursday and is looking set to put an end to the six-day streak of declines, its longest since February. The US currency is posting gains across the board,...

Dollar Up Ahead Of Jackson Hole, Aussie Falls On Political Woes

Here are the latest developments in global markets: FOREX: The dollar was 0.2% higher against a basket of currencies on Thursday after declining for six straight days. Potential catalysts for the currency’s direction during the remainder of the week are ongoing developments on the trade front and the Jackson Hole...

Fed Minutes And Jackson Hole Put Focus Back On Central Banks

August Fed minutes in focus today; Powell Jackson Hole appearance eyed after Trump comments; Trump doubtful on progress in negotiations with China. Central banks are back in focus as we head into the second half of the week, with the Federal Reserve minutes being released on Wednesday ahead of...

Into US session: Yen and Dollar Weak, Euro strong as German-Italian spread narrows

Entering into US session, Yen and Dollar remain the weakest ones in the currency markets. Selloff in the Dollar slows a little bit but there is no sign of bottoming yet. Swiss Franc is currently trading as the strongest one, followed by Euro. It seems Euro is rather troubled...

Jackson Hole Symposium Preview: Two Questions on Fed’s Monetary Policy

While it is not a practice for Fed chairs to offer hints on the monetary policy outlook at the annual Jackson Hole symposium, their speeches at the event have always caught market attentions and sometimes move the market. At the upcoming meeting on August 23-28, Fed Chair Jerome Powell...

Yellen’s Policy Silence Pressures Dollar and Supports Gold

The heavily anticipated speech by Federal Reserve Chair Janet Yellen in Jackson Hole on Friday disappointed Fed-watchers who were hoping for a glimpse into possible monetary policy moves on the horizon. The speech was long on commending regulatory actions taken after the financial crisis, but very short on any clues about interest rates or other aspects of monetary policy going forward.

(ECB) Mario Draghi – Sustaining Openness in a Dynamic Global Economy

The global recovery is firming up. In some countries like the United States, this process has been visible for some years, in others like Europe and Japan, the consolidation of the recovery is at an earlier stage. So it is fitting that our discussions are now focusing not only on how to stabilise the economy, but also on how to make it more dynamic – while at the same time improving people's welfare. At the centre of this debate is the question of how to raise potential output growth, which has slowed from around 2% in OECD countries in 2000 to around 1% today.

Yellen Induces Dollar’s Tumble, Traders Await Draghi for Further Moves

The dollar tumbled against all majors following the speech of Federal Reserve Chair Yellen at the Jackson Hole symposium. The US currency managed to trade higher against the yen for most of the European session and got a small lift after the release of US durable goods data, but that was short-lived. The dollar index fell 0.43% to last trade at 92.89.

(FED) Chair Janet L. Yellen – Financial Stability a Decade after the Onset of the Crisis

A decade has passed since the beginnings of a global financial crisis that resulted in the most severe financial panic and largest contraction in economic activity in the United States since the Great Depression. Already, for some, memories of this experience may be fading--memories of just how costly the financial crisis was and of why certain steps were taken in response. Today I will look back at the crisis and discuss the reforms policymakers in the United States and around the world have made to improve financial regulation to limit both the probability and the adverse consequences of future financial crises.

Markets Turn To Yellen And Draghi For Guidance

Today, all eyes will be on two highly-anticipated speeches by Fed Chair Janet Yellen and ECB President Mario Draghi at Jackson Hole. Kicking off with Yellen, her speech will center on financial stability. Even though the subject suggests she may refrain from commenting on interest rates, she could always make a reference to the outlook of the US economy that indirectly conveys her policy view. Should she echo recent comments from Fed’s Dudley, who still favors another rate hike this year, markets could reprice the probability for such action, which now rests at only 39% according to the Fed funds futures. This could help the dollar recover some of its latest losses.

Dollar Gains Ahead Of Jackson Hole, Oil Up On Texas Output Disruption

The dollar gained against the yen and the euro ahead of the central bankers’ symposium in Jackson Hole. The dollar index was up 0.11% and was trading at 93.37 as Asian traders were heading home for the week. Oil prices also rose on the possible disruption in the Gulf of Mexico, in Texas.