The following 5 days of trade will likely be heavily influenced by the Federal Reserve’s annual symposium held at Jackson Hole, Wyoming. The event attracts many central bankers from across the globe and has been used in the past to communicate various key policy shifts.
This year, it’s expected the Fed will deliver a message preparing markets for the commencement of tapering their $120 billion of monthly asset purchases which has been in place since April last year. The market is somewhat already anticipating this move following last week’s Fed meeting minutes which indicated that most participants envisaged this occurring by year-end.
The symposium begins on Thursday but the key appearance arrives on Friday where Jay Powell will speak at 3 pm UK time. We should see volatility across all asset classes as the governor of the world’s largest central bank delivers further information on the Fed’s intentions for the remainder of 2021 and into 2022. The greenback could see a significant move depending on what the governor says. It’s still possible we could see a move in either direction.
Have a great week.
Written by Viv Savani. 8:56am, August 23rd 2021
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