Advertisement
Advertisement

And the Wait Continues

By:
Sylvester Stephen
Published: Aug 26, 2016, 04:33 UTC

The market continues its wait for the outcome of the meeting at Jackson Hole. The volatility and the liquidity for the whole of this week has been

And the Wait Continues

The market continues its wait for the outcome of the meeting at Jackson Hole. The volatility and the liquidity for the whole of this week has been affected by the wait for this outcome and the ranges become shorter and shorter as the end of the meeting nears. The market expects a lot, as usual, from the meeting but the overwhelming feeling of those in the know is that the meeting will deliver very little, as usual. The USD has continued its strength as has been the theme for the whole of this week and we expect it to weaken a little as the market realises that the outcome was a dud. This weakening could continue for a couple of days next week but we expect the USD strength to be the underlying theme for the coming months as the market prepares itself for the rate hikes from the US.

The Fed officials continued their jawboning yesterday but they have begun to have lesser and lesser effect on the market. In other news this morning, Japanese inflation data was released and the actual was -0.4% against the -0.3% that was expected. Not only was the actual data worse, it was also far worse than the target of 2% set by the Japanese government. But it barely had any effect on the yen and USDJPY still cannot seem to break out decisively on either side of 100.

With the ranges tight and the market waiting for the outcome of the meeting, there aren’t much trading opportunities except for the scalpers. We hope that once the outcome is finally known, the volatility would return and we could expect more opportunities next week.

About the Author

Did you find this article useful?

Advertisement