Markets quiet before Jackson Hole
By Ipek Ozkardeskaya
The FX markets are quiet ahead of the Federal Reserve (Fed) Chair Janet Yellen and the European Central Bank (ECB) President Mario Draghi’s speeches in Jackson Hole due later in the day. The expectations are low.
Mario Draghi will certainly not breathe a word about the ECB’s bond purchases program, which is due to end in September. Therefore, the September 7 ECB meeting will likely be the breaking point for the hawkish speculations.
Low euro rates encourage buyers to realize profit on small moves and prevent the EURUSD from taking a clear bullish direction. Traders are expected to remain buyer above 1.17. Below this level, the EURUSD could take a chance on a short-term downside correction. Light put options trail below 1.17 at today’s expiry.
The final GDP data confirmed Germany’s 2.1% growth in the second quarter. The DAX recorded timid gains at the open. The upside potential could be limited as traders refrain from taking positions before the critical ECB decision. The European equity funds redeemed $231 million over the week to August 23 according to EPFR.
Click here to read the full article on LCG.com
By Ipek Ozkardeskaya
The FX markets are quiet ahead of the Federal Reserve (Fed) Chair Janet Yellen and the European Central Bank (ECB) President Mario Draghi’s speeches in Jackson Hole due later in the day. The expectations are low.
Mario Draghi will certainly not breathe a word about the ECB’s bond purchases program, which is due to end in September. Therefore, the September 7 ECB meeting will likely be the breaking point for the hawkish speculations.
Low euro rates encourage buyers to realize profit on small moves and prevent the EURUSD from taking a clear bullish direction. Traders are expected to remain buyer above 1.17. Below this level, the EURUSD could take a chance on a short-term downside correction. Light put options trail below 1.17 at today’s expiry.
The final GDP data confirmed Germany’s 2.1% growth in the second quarter. The DAX recorded timid gains at the open. The upside potential could be limited as traders refrain from taking positions before the critical ECB decision. The European equity funds redeemed $231 million over the week to August 23 according to EPFR.
Click here to read the full article on LCG.com