Analysts at TD Securities suggest that as the global central banking community descends into Jackson Hole, markets will be on the looking for any substantive policy announcements.
Key Quotes
“This may be a big ask for most of the central bankers that are there where policy inertia seems deeply entrenched for the balance of the year.”
“Any discussion of neutral policy by the Fed might challenge the duration of “divergence” theme however.”
“With this in mind, one central banker to watch for is Stephen Poloz as the Symposium represents the last major public platform for him to telegraph a narrative ahead of blackout period for the September meeting.”
“CAD may trade on its front foot vs. the USD in the near-term but we think dips in the pair should be relatively shallow. We continue to prefer scaling into short CAD exposure on crosses such as NOK and EUR however.”
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