Monday, August 18, 2014

Forex market events this week | Jackson Hole symposium moves centre stage

In these dog days of summer the Foreign Exchange market looks to a number of events later this week that just could have the effect of setting the scene for a rise in volatility when traders get back to their desks after the vacation period.

While tomorrow (Wed) sees the publication of the FOMC minutes for its last meeting, which might give some clues about the likely timing of interest rate rises, we also have the minutes of the Bank of England Monetary Policy Committee on the same day. At the Bank of England, Governor Mark Carney has been sending somewhat confusing signals to the market about interest rate rises, which it does not like.

The ECB, under Mario Draghi, has been worried about low inflation but seems constricted in what, if anything, they can do about it.

Jackson Hole symposium is centre stage

In these circumstances the annual Jackson Hole Economic Symposium, hosted by the Kansas City Federal Reserve and running from Thursday to Saturday, will be of consuming interest. Here, Central Bankers and other economic personalities will speak and be interviewed on their fears, intentions and hopes for the future.

Mark Carney of the BoE will not be able to make it on this occasion, but he will be represented by the deputy governor, Ben Broadbent. Will he be able to give some clarity to his superior’s recent remarks, detailed here and here?

The words of Janet Yellen (US interest rates) and Mario Draghi (EU Quantitative Easing or something akin to it) will be parsed and analysed, not least on our commentary, as will anything else that might be germane to the movement of currency exchange rates..

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