Euro Tumbles, Bunds Spike On Report ECB "Growing Worried" About Strong Currency
It's time to start worrying about currency wars again.
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European Central Bank
Mario Draghi's Fatal Conceit
Authored by Thorstein Polleit via The Mises Institute,
On 23 August 2017, the president of the European Central Bank (ECB) gave a speech titled “Connecting research and policy making” at the annual assembly of the winners of the Nobel Price for Economics in Lindau, Germany. What Mr Draghi talked about on this occasion — and especially what he didn’t talk about — was quite revealing.
Draghi Fears "Return Of Protectionism"; Warns Regulators Against "Rekindling Incentives That Led To Crisis"
As a reminder, it was in Jackson Hole three years ago that Draghi laid the groundwork for the launch of the ECB's 2.3 trillion-euro asset-purchase program.
They looked pensive before he spoke...
Jackson Hole Preview: Market Reactions, And Why UBS Says "Don't Skip Lunch"
Historically the annual Jackson Hole symposium has been a major market-moving event as it has traditionally been the venue where central banks make critical announcements such as Bernanke's preview and hints of QE2 and QE3 in 2012, as well as Draghi's suggestion of the ECB's QE in 2014. As shown in the chart below, market reactions following these events have been material.
Key Events In The Coming Week: All Eyes On The (Jackson) Hole
Absent any major geopolitical shocks, it is set to be a quiet summer week ahead with focus on the Jackson Hole conference. On the data front the key releases will be US durable goods and Eurozone PMIs, as well as Japan inflation & UK and Norway GDP. In Emerging Markets, there are monetary policy meetings in Indonesia, Hungary and Kazakhstan.