Morning comment rate - Landscape after the Jackson Hole 9:29, Monday 25-08-2014 Monday morning on the currency market is marked by reaction already completed symposium in Jackson Hole. Statements by heads of central banks, including Janet Yellen primarily led to increased volatility in the market, particularly in the dollar pairs. Speech by Fed boss does not bring anything new in terms of information about the first rate increase. She pointed out that if published in the next months data from the American market, especially from the labor market, will prove to be better than expected, the Fed will not delay the tightening of monetary policy. On the other hand, Yellen gave all to understand that any deterioration in the readings may result in a delay the first rate increase. However, the head of the FED words were received by the market as a slightly hawkish, which led to the strengthening of the dollar, which we continue today in the morning. At a conference in Jackson Hole speech could also hear Mario Draghi, head of the European Central Bank. Investors attentively listened to the speeches of the President of the ECB in anticipation for the announcement to his innovative by the standards of the central bank of the euro area, the methods of fight against the release weakening the economy and inflation in the form of quantitative easing. However, Mario Draghi, like Janet Yellen, has not brought anything new to the discussion on the future operations of the ECB. In his speech he stated that it hopes that the June operation of the central bank will step up demand in the euro zone, and also drew attention to the divergence in monetary policy the Fed and the European Central Bank. In addition, the ECB president signaled that the central bank is ready for further action, if necessary. The first data, important from the point of view of the eurozone economy, will be announced today at 10 am in the form of readings IFO index imaging mood in the German economy. For the euro this week, however, may be the key inflation data for August, which will be announced on Thursday and Friday. While in Germany, inflation could stabilize at 0.8%, whereas in Spain the price is expected to decline by 0.6%. It is the threat of deflation on southern Europe imposes on the moment the greatest pressure on the ECB and on this count seller euros.
Posted on: Mon, 25 Aug 2014 07:55:54 +0000
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