Norway

FX Week Ahead: Jackson Hole, And A Chance For Yellen To Fend Off Some USD Bashing

Coming off a mixed week for the USD, traders focus their attention on the Jackson Hole symposium which starts on Thursday, running through to Saturday.  Within this, Friday's address by the Fed chair will take centre stage, and for all the 'will she, won't she' talk about monetary policy, the market will be hanging on Janet Yellen's words, as the third rate hike for 2017 remains in the balance. 

Will EVs Break The Grid?

While the UK government has vowed to end the sale of all new conventional gasoline and diesel cars by 2040, as part of a wider plan to fight air pollution, there is talk that electricity demand will lead to a fast and dirty response to a strained power grid.

Global Stocks Rise Amid Unexpected ECB "Trial Balloon"; Dollar Flat Ahead Of Fed Minutes

European markets continued their risk-on trend in early trading, rising to the highest in over a week and rallying from the open led by mining stocks as industrial metals spike higher after zinc forwards hit highest level since 2007. The EUR sold off sharply, boosting local bond and risk prices after the previously discussed Reuters "trial balloon" report that Draghi's speech at Jackson Hole would not announce the start of the ECB's taper.

FX Week Ahead: Myopic Markets Hit USD On Inflation Miss

Once again, sluggish inflation takes a hammer to currency and we saw the USD turn back from a tentative recovery, which many still see as corrective against some of its major counterparts.  In comparative terms, we still feel the numbers out on Friday were not as bad as the pundits and markets perceived, but liquidity in the summer is not at its best.

Key Events In The Coming Vacation Week: All About Inflation

With the traditional post-payrolls market lull setting in, and most trading desks taking a week or two off, it will be a relatively quiet week with attention turning to inflation data with releases in the US, China, Norway & Switzerland, a key factor as central banks consider if/when to tighten in the near future.

Frontrunning: August 7

  • Futures slightly higher after Dow's record run (Reuters)
  • Tillerson says U.S., Russia can settle differences (Reuters)
  • Hot-Stock Rally Tests the Patience of Value Investors (WSJ)
  • ‘Good Conservative’ Grassley Ramps Up His Panel’s Trump-Russia Probe (BBG)
  • Brands Strike Back: Seven Strategies to Loosen Amazon’s Grip (WSJ)

Russia, Belarus Joint Drills Used As Pretext For NATO War Preparations

'Zapad-2017' is a joint strategic military exercise of Russia and Belarus scheduled for September 14-20, 2017. NATO, the United Nations, the OSCE and other countries have been invited to send their observers... "The hysteria which is being whipped up in Lithuania [about Zapad-2017] is meant to score political points and justify the militaristic psychosis..."

Electric Vehicles No Threat To Oil Prices Anytime Soon

Hardly a day goes by without another media report about the impending demise of the Internal Combustion Engine as petroleum powered cars and trucks are replaced by uber-clean Electric Vehicles. It is just a matter of time before EVs start to materially reduce global oil demand thereby capping a meaningful oil price recovery now and creating an ever-shrinking industry in the future... Except it isn’t true.