Jackson Hole: Draghi and Yellen in focus - TDS

Analysts at TDS suggest that speeches from Fed Chair Yellen and ECB President Draghi will be in focus from the ongoing Jackson Hole Symposium in today’s session.

Key Quotes

“Fed Chair Yellen will deliver the Jackson Hole Symposium's opening speech at 10:00 ET and will center her remarks on financial stability. While we do not expect Yellen to advocate for tightening policy solely on financial stability concerns, she may cite it as one of the reasons that warrants the continued removal of accommodation. While this would be a hawkish risk, some observers may also be worried that Yellen could voice concern with the Fed’s inflation conundrum, which has led us to revise down our outlook for rate hikes. ECB President Draghi will take to the podium during the afternoon session at 15:00 ET while other speakers will be announced when the program is released tonight.”

“Durable goods orders for July are the lone economic release and both TD and the market look for orders to unwind nearly of the outsized gain from June. TD is calling for orders to fall 6.1% m/m due to a sharp pullback in nondefense aircraft orders, leaving the ex-transport measure up a healthy 0.4% (market: -6.0%, ex-transport: 0.4%).”