Political uncertainty continues in Washington as chief White House advisor Gary Cohn might consider resigning his post (increasing uncertainty over tax reform and infrastructure spending) whilst Steve Mnuchin, for the moment, appears to be faithful to Trump. The market’s focus will be amost 100% on Jackson Hole this week. We know Draghi will stick to a boring script, but expectations are still high regarding Yellen’s speech.
USD: Relatively quiet week with tier-2 data. All eyes will be focused on Jackson Hole (Thurs-Fri) with political drama that could influence the greenback.
EUR: slightly more interesting calendar for Europe with German ZEW (Tue) followed by EU Flash PMI (Wed) and German GDP (Fri).
UK: The main data event in the UK is Q2 GDP (Thur).
Cad: Canadian retail sales (Tue) are the one and only market mover that has potential to stir up some volatility. The Joint OPEC-Non-OPEC Technical Committee (JTC) is set to convene in Vienna on Monday, and while nothing is expected, it is still worth noting.
AsiaPac: nothing to note.
It will likely be another dull week due to holidays and a light data calendar. I’d expect Jackson Hole to stir up some decent volatility for the week of the 28th, but leading up to the event markets are likely to remain dull. Gbp remains the laggard and Cad is still the leader, but again it’s a week where continuation cannot really be expected. Hit & Run remains the better stance perhaps.
by Aug 20, 2017 – 9.56 pm|
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