24/ 08/ 2017

Jackson Hole Symposium Begins

The U.S. dollar weakened on Wednesday as investors reduced exposure in higher-yielding assets after U.S. President Trump’s threat of a government shutdown and comments about the possible termination of a North American trade agreement.  Meanwhile, the market is in a wait and watch mode for the meeting at Jackson Hole, we are likely to see a lot of volatility with the focus being on the euro as Draghi &Yellen is expected to state some important policy related announcements following the meeting late on Friday.

As we move towards the end of the week, the focus will shift to the Fed and the Jackson Hole symposium after the U.K will present its Second Estimate Gross Domestic Product data and US Continuing and Initial Jobless Claims later today.

23/ 08/ 2017

Will ECB Draghi Speech deepen Euro losses ahead of Jackson Hole?

The dollar rallied on Tuesday after falling for two straight days, benefiting from the euro's decline following weaker-than-expected euro zone data as well as investors adjusting positions ahead of a global central bankers' conference this week.  The meeting is likely to be followed by speeches from Draghi and Yellen and this is set to bring in a lot of volatility in the markets and hence, we are seeing consolidation now as the traders take their respective positions in anticipation of the news.

Looking ahead, today's data will be coming from US and Eurozone Markit Manufacturing & Composite PMI which could certainly affects the greenback and euro, but the highlight will be the ECB President Mario Draghi as he will give speech right before the awaited Jackson Hole Symposium.

22/ 08/ 2017

US Politics a Curse or Blessing?

The U.S. Dollar posted a two-sided trade on Monday, first drifting higher early in the session then plunging into the close. Most of the selling pressure was attributed to the strength in the Euro. With very little major economic news, investors were forced to speculate on the outcome of President Trump’s speech Monday night, the commencement of military exercises between South Korea and the U.S., and the start of the annual central banking conference in Jackson Hole, Wyoming later this week. Traders are hoping central bankers signal their next policy actions at this year’s symposium.

Later today, we have the Swiss trade balance due to be reported ahead of the European opening bells, while the European session sees the releases of the German and Eurozone ZEW surveys. From the UK docket, the public-sector net borrowing and CBI industrial order expectations data will be published.

20/ 08/ 2017

Week Ahead | The Jackson Hole Symposium

Last week the Dollar had a mixed week with Trump Troubles and relatively dovish FOMC meeting minutes which did not support the dollar. However, the retail sales data did beat market expectations. Pound was upbeat initially but then went in to a struggle with inflation data missing market expectations.

Compared to Dollar and Pound, Euro had a relatively good week with the release of strong economic data amidst a dovish outlook from ECB Meeting minutes which said that current Euro strength is not what they were expecting.

Apart from political news, this week brings us all important US Housing data, durable goods and most importantly the Jackson Hole Symposium. The comments made at the symposium will be closely monitored by markets for any impetus on forex market.