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19 Aug 2013
Flash: EUR/USD event risks building – TD Securities
FXstreet.com (New York) - Markets should continue to focus on anything to do with rates chatter in the week ahead, and the sharp reaction to Bundesbank comments in recent hours reinforces that idea, suggests the TD Securities Team.
Key quotes
“The mere reiteration that forward guidance is not and ‘unconditional commitment’, and that policy rates could be lifted if the inflation outlook moved higher, was enough to see the EUR/USD jump at least 30 pips recently.”
“While it’s a quiet week for data globally, the FOMC minutes (due Wednesday), EZ PMIs (Thursday), and Jackson Hole Conference (starting Thursday) will be the highlight events of the week.”
“For Jackson Hole, many of the key players will not be in attendance (Bernanke, Draghi, and Carney all sent their regrets), but there is nevertheless still the potential for some market-moving comments from the conference—perhaps an opportunity for policymakers to push back on the move higher in rates.”
Key quotes
“The mere reiteration that forward guidance is not and ‘unconditional commitment’, and that policy rates could be lifted if the inflation outlook moved higher, was enough to see the EUR/USD jump at least 30 pips recently.”
“While it’s a quiet week for data globally, the FOMC minutes (due Wednesday), EZ PMIs (Thursday), and Jackson Hole Conference (starting Thursday) will be the highlight events of the week.”
“For Jackson Hole, many of the key players will not be in attendance (Bernanke, Draghi, and Carney all sent their regrets), but there is nevertheless still the potential for some market-moving comments from the conference—perhaps an opportunity for policymakers to push back on the move higher in rates.”