Market Snapshot – Markets in Choppy Mode Ahead of Meeting

Markets Await Draghi Speech

The markets have been moving higher as we get closer and closer to the meeting at Jackson Hole which is by far the most important event of the week and an event which the traders, especially those of the European markets, have been keenly waiting all this week. The market wants to see whether Draghi signals any major shift in the monetary policy though history tells us that he is unlikely to specify any major changes in policy in this meeting and he would like to play it down as a method of controlling the euro which is already quite high. If that is the case, then the market could be in for a disappointment and this could lead the euro lower and the stock markets higher while any hint of tapering from Draghi is likely to hit the stock markets hard while it would send the euro rocketing higher.

Dollar and Euro Choppy

It is this that may worry the ECB and the dollar as well as the dollar has been getting hit all across the board over the past few months. The Fed Chief Yellen is also slated to speak tomorrow but not much is expected from her speech with all the focus and the attention on Draghi. The euro and the dollar have been trading in a choppy manner since the beginning of the week in anticipation of this meeting and this choppiness is likely to continue until the dust settles down.