Powell takes the stage

Today's news headlines: 

‘Covid vaccines estimated to have prevented over 100,000 deaths in England’. Public Health England has determined that between 102,500 and 109,500 deaths have been prevented as a result of the vaccine rollout in England. The ballpark figure was calculated by measuring the overall reduction in the number of so-called ‘worst-case scenarios’ of infection. Coronavirus cases have risen 11% over the last week as concerns begin to grow around the continued climb in case numbers. This has prompted the government to consider expanding the vaccine programme further to include 12 to 15-year-olds in areas where infection rates are currently at their highest. (Financial Times)

‘ECB holdouts dissented on new policy guidance, minutes show’. The latest meeting minutes from the European Central Bank's governing council show policymakers were torn regarding future policy guidance, with some concerned that rising inflation risks weren't prominent enough. The central bank suggested that interest rates wouldn't be hiked until inflation levels at or above the 2.0% target were persistent, not just transitory, although consumer prices are expected to reach the central bank's goal sooner than previously expected. The ECB will review its guidance in one month, which is expected to be the meeting where tapering measures are discussed. (Financial Times)


Today

Markets drifted lower yesterday as anticipation builds for the second day of Jackson Hole and Federal Reserve Chairman Jerome Powell’s speech. The S&P 500 closed 0.58% lower, while in Europe, the Stoxx 600 was 0.3% softer on the day. Currencies are little changed in early trading, with Cable holding on to the $1.37 handle. Elsewhere, the US 10-year treasury yield rally has lost some steam, stalling at the 1.34% level.

Events

Australia Retail Sales m/m: -2.7% vs -1.8% last month
US Core Personal Consumption Expenditure Price Index m/m: 1:30PM
Federal Reserve Chairman Jerome Powell speaks: 3:00PM
US Revised UoM Consumer Sentiment 3:00PM
Jackson Hole Symposium: All Day


Interbank rates:

GBP/USD – 1.3705
GBP/EUR – 1.1647
EUR/USD – 1.1769
USD/CAD – 1.2658

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