FX Files – It’s Jackson Hole!

FICC Strategy Reports

At 10:00am EST, Warsh is scheduled to deliver his first Jackson Hole speech, but he will unlikely say much beyond reinforcing the Fed’s 2% inflation target. Markets are close to unchanged ahead of the event with DXY at 99.20 (+0.05% OTD). Both US equity and bond futures are flat into the start of the session. We are not looking for large market moves into Jackson Hole, but should Warsh over emphasize the Fed’s inflation target, the market could skew slightly hawkish, and we could see a small bid to USDs

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