In our week ahead preview we talked quite a bit about the implications of this week’s data deluge for yields, the dollar, and especially for EURUSD.
The context for that discussion is of course the exceptionally dour sentiment around the greenback and the widely-held belief that the euro has become something of a “sure thing” – at least in the near-term.
Yellen and Draghi did nothing to disabuse the market of that on Friday in Jackson Hole.
Quick aside: spot the central banker who doesn’t see what everyone is so goddamn concerned about…
As former trader Richard Breslow writes in his first daily missive of the week, one reason for the lack of conviction at Jackson Hole probably has to do with the fact that this week’s data has the potential to either reinforce or completely change the narrative and so, saying anything definitive ahead of it would have set the vaunted policymakers up to look silly.
Read more below from Breslow…
Via Bloomberg
