Bank Research Consensus Weekly 09.04.12
FX: ECB Meeting to Support the Euro
Arne Lohmann Rasmussen, Chief Analyst, Danske Bank
The focal point in the FX market in the coming week will be the ECB meeting. There is little doubt that the market has high expectations not least after the Wall Street Journal wrote that ECB President Draghi “due to the heavy workload foreseen in the next few days” would not attend the annual economic symposium in Jackson Hole this weekend.
Bernanke: The Fed Has Options
John E. Silvia, Chief Economist, Wells Fargo
Chairman Bernanke’s speech at the Jackson Hole conference suggests that the Federal Reserve has a number of policy options to provide further stimulus, including another round of asset purchases, but there was no immediate announcement of any policy action. Our view, which is an extension of the interest rate guidance through 2015 but no QE3 at the Sept. 12-13 Federal Open Market Committee meeting, may be influenced by a weak jobs report. A weak jobs number may draw more substantial action at the September meeting.
U.S. – From Jackson Hole, With Love
Chris Jones, Economist, TD Bank Financial Group
When Ben Bernanke speaks, it usually makes news. So when the Chairman delivered his opening remarks at the Kansas Fed’s Economic Symposium in Jackson Hole Friday morning, markets were listening. Recall it was at this event two years ago when the Chairman hinted at QE2. Now, with expectations of QE3 on the rise, market participants were once again looking for a signal that additional monetary stimulus is imminent.
Compiled by David Song, Currency Analyst
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