After the usual wet and windy Bank Holiday weekend in the UK, it’s back to work today and lots for the markets to digest after the Jackson Hole Conference over the weekend and yesterday’s Scotland Independence Debate.
Mario Draghi Impresses
The standout speech at Jackson Hole was incredibly Mario Draghi. This is not something that is often written. In comments similar to before the last rate decrease, Draghi commented upon how the ECB was prepared to respond with all its available tools if inflation drops further. This led to bond yields dropping to all-time lows, and Euro US Dollar falling to 11 month lows.
The US Dollar also profited from a united front of Janet Yellen and Atlanta Fed President Dennis Lockhart who urged cautious optimism in the US Economy and pointed at a rate hike in either Q1 or Q2 next year. The wheels are certainly in motion.
The Bank of England Deputy Governor Ben Broadbent was also speaking and his standout remarks were based mainly on the slow wage growth affecting the UK and until this was remedied it is unlikely that the UK will raise rates. Are we going to see this happen before November?
Good news from New Zealand as the fiscal performance continues to improve and the Government has the flexibility to ensure that this remains the case.
Last night saw the latest instalment of the Scottish Independence debate and this televised instalment was widely believed to be won by the Nationalists. Focusing on the oil wealth and preservation of the NHS, Alex Salmond shifted the focus from the Pound which Darling confessed Scotland could keep unilaterally and with 3 weeks to go, seized the momentum.
The main news out today is all from the US with particular focus being on Durable Goods Orders and Consumer Confidence.
Posted in Daily Market News on Aug 26 2014
As another week of Dollar gains across the board and the Pound weakens for the 7th consecutive week in its longest losing (or losingest, if you’re American) streak since September 2008, all eyes are on happenings at Jackson Hole.VIEW FULL ARTICLE
Posted in Daily Market News on Aug 22 2014 by Adrian Jacob