Market movers today
Today is the day we've waiting for all week with both ECB President Mario Draghi and Fed President Janet Yellen speaking at the Jackson Hole Symposium. Yellen will speak at 16: 00 CET on the subject of financial stability. It will be interesting to hear her thoughts on the how monetary policy plays a role in this. While full employment and inflation at 2% are the Fed's main objectives, financial stability can play a role too. If she gives any policy signals, we expect her to mirror Fed vice President Bill Dudley's comments last week that another rate hike is warranted this year if the economy holds up. If so, it could be interpreted a bit on the hawkish side given the market is pricing in only a third of a likelihood of a hike by end-year.
Tonight focus will turn to Mario Draghi, due to speak at 21:00 CET. We expect him to lean on the dovish side as the euro strength has challenged the ECB in getting inflation higher and is causing some concern within the ECB, according to the minutes from the previous meeting. He may refrain from giving any signals on tapering as signalled by a recent Reuters' story that quoted two ECB sources saying he would not be giving any new policy signals but await the tapering discussion in the ECB Council in the autumn. See also Euro Area Research: Draghi returns to Jackson Hole with a dovish message , 18 August 2017.
On the data front, we have the German ifo index and US durable goods orders today. These will be in the background though, as attention today will be on Jackson Hole.
In Sweden, PPI and household lending data are due to be published. See Scandi Markets on page 2 for more details.
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