Draghi, Yellen to Speak at Jackson Hole

Sterling ticked up yesterday after meeting support around new recent lows and ahead of the second estimate of Q2 GDP, which came in unrevised at 0.3% QoQ and 1.7% YoY and underwhelmed some traders' expectations, but later fell back.

Previous Day's Market Highlights

Sterling ticked up yesterday after meeting support around new recent lows and ahead of the second estimate of Q2 GDP, which came in unrevised at 0.3% QoQ and 1.7% YoY and underwhelmed some traders' expectations, but later fell back.

The euro was sold off during the morning session after having hit its highest levels against the pound since 2009, excluding last October’s flash crash, and having regained the 1.1800 level against the dollar.
 
Sterling-dollar temporarily broke back above 1.2800 after meeting support around 1.2775. US data were mixed as Existing Home Sales slowed more than forecast and weekly Initial Jobless Claims picked up less than expected, from 232K to 234K.
 
Traders' positioning themselves ahead of Friday’s highly anticipated Jackson Hole Economic Symposium also drove market movement. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.0858 1.1208 1.0827 3.40%
GBP / USD 1.2804 1.3272 1.2777 3.73%
EUR / USD 1.1791 1.1912 1.1671 2.02%
GBP/AUD 1.6199 1.6743 1.6171 3.42%
GBP / NZD 1.7764 1.7929 1.7417 2.86%
GBP / CAD 1.6019 1.6727 1.6006 4.31%

Today's Market Highlights

The main releases to come today are US Durable Goods Orders (13:30 BST), which are forecast to have declined 6.0% in August, with core orders projected to have risen 0.4%. Lower figures could weigh on the dollar this afternoon.
 
Attention today will largely be on the Jackson Hole Economic Symposium, at which both Fed Chair Yellen and ECB President Draghi will speak (17:00, 20:00 BST). Yellen is expected to speak on financial stability.
 
Given recent speculation that the ECB will soon announce an adjustment to QE, ECB President Draghi’s comments will be particularly closely watched, although some ECB sources have recently said Draghi won’t indicate any policy changes.  
 
Whilst Yellen and Draghi may try to keep a balanced tone during today’s speeches, any direct signals on the future of monetary policy could prompt notable currency movement. Particularly, any hawkish undertones in Draghi’s comments could support the euro. 

Today's Economic Calendar

Time Currency Release Consensus Previous
13:30 USD Durable Goods Orders (Jul) -6.0% 6.5%
13:30 USD Core Durable Goods Orders (Jul) 0.4% 0.1%
17:00 USD Fed Chair Yellen Speaks
20:00 EUR ECB President Draghi Speaks