It seems as if the FED head used the Jackson Hole platform for “justification”, speaking in defense of his own post-crisis reforms, free trade, globalization. Take a look at all the main points that were presented at the meeting.
Pressure on the British currency will be balanced by the peaceful comments of the central bank heads in of the United States and Europe. The two major forces will discuss the key issues about the development of monetary policy on Friday.
What surprises did the Central Bank executives have for the investors?
To investors great regret, Mario Draghi refrained from discussing monetary policy in the speech at Jackson Hole, however, from the Federal Reserve head Janet Yellen, we could expect more constructive comments.
Are the disappointing statistics the end of the USD leadership?
European and Asian indices are trading in a negative territory due to the USA and North Korea escalated tension. The main beneficiaries of this situation are defensive assets, including the Yen, the Swiss franc, and Gold.
What’s wrong with the Phillips curve in the US economy?
One of the strengths of the July NFP was primarily the increase in wages by 0.3%. Given the high consumer expectations, the increase will give hope for growth in the July consumption, and thus will provide inflation improvement.
The current rise in Gold prices suggests that participants are less likely to believe in a third rate hike this year. In the light of this information postponing the rise to the next year is undoubtedly a bearish signal for the Dollar.
The Risk attitude in the global market is very “friendly”, as VIX went below 10 points – a historical record of calm. Gold and the Japanese Yen are trading in the red zone despite the weakness of the US currency.