Jackson Hole: Yellen and Draghi awaited by markets - Rabobank

The Fed’s Jackson Hole Symposium is finally underway and while Fed Chair Yellen’s speech will be slotted in before the end of the London session at 15:00 BST, ECB President Draghi is not due to step in front of the podium until 12:00 BST, points out the analysis team at Rabobank. 

Key Quotes

“Newswires have already warned that neither central banker will be providing any new policy messages.  However, that will not prevent the market from examining every word and nuance for clues.  While the market will be dissecting Yellen’s words for signs of concern within the FOMC regarding benign US inflation levels, any policy signals offered by Draghi have the potential to be even more influential for the market.”

“Although EUR/USD has been consolidating since the start of this month, the gains made by the EUR this year represent a tightening on monetary conditions which could influence the timing of any announcement from the ECB regarding the tapering of its QE programme.”