Credit Agricole CIB Research discusses its expectations for tomorrows Fed Powell's Jackson Hole speech at.
"The 27-28 August Jackson Hole central bank symposium will be the Fed’s next opportunity to share its plans for policy normalisation with the markets. We believe that the recent outbreak of the pandemic in the US will likely make the FOCM speakers stick to their patient, data-dependent rhetoric," CACIB notes.
"In turn, this could support risk sentiment at the expense of the USD in the near term. Any risk sentiment rebound may prove only temporary, however, in view of the key US data releases next week," CACIB adds.