Market Update: 24 August 2020
Besides Trump finally striking a deal for a 25Bln support package for US Postal Services – to allow for Postal Votes which in a way, takes some political risks away for a November election, but everything else is still about Presidential Orders to circumvent deal-making with the Democrats or being coy on how US-China trade negotiations are going.
The EU seems to be at odds as well with the UK on their trade deal as EU’s Barnier said late Friday, agreements seem unlikely. This, in combination with some poor PMIs in Europe had EUR on the ropes and took AUD and GBP lower for the ride.
Now whilst we have not gotten clear direction from the FOMC minutes for any further measures, we can look forward to Jackson Hole this week where Jerome Powell will be speaking virtually on the 28th (overnight Sydney Time). Over the years, the importance of Central Bankers to talk at the symposium has waxed and waned.. there have been quite crucial inflection points where heads of the Fed have used this as an opportunity to reveal new policy. The speech is titled “Navigating the Decade Ahead: Implications for Monetary Policy”.
There is not much else in substance for the early part of the week ahead data wise… German GDP and retail sales, the latter provides US Jobless Claims and the 2nd update on Q2 GDP (same day as Powell speaking and not much hope for improved numbers from prior).
Have a great week ahead!
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