A week ago, the markets were all atwitter in anticipation of a watershed moment at the Jackson Hole Symposium. Now, as the event approaches, excitement is dimming.
Mario Draghi canceled his appearance and many expect Bernanke to stop short of revealing his policy intentions regarding additional asset purchases. The data of late has been mixed and if I were the chairman, I’d want to see the August employment report and ISM survey before making any pronouncements.
Looks like we have two full sessions in which we will range trade withing 1.2450/1.2600 until Big Ben speaks. If he does not wave a QE3 flag, look for the dollars to recoup a bit of recent lost ground.
