Citi on Jackson Hole and Brexit
Citi Research argues that ECB Governor Draghi may not have any significant announcement in Jackson Hole, which may restrain EUR.
"In our view, if Fed Chair Yellen mentions in Jackson Hole that easing financial conditions may further support rate hikes, which may underpin USD," Citi adds.
On the GBP front, Citi notes that a new round of Brexit negotiations between the UK and EU will begin on Aug 28, covering Brexit bill, citizens' rights and the Northern Irish border issue.
"Thus, we expect Brexit uncertainty likely cap upside around 1.32 in GBP/USD," Citi argues.
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