Focus will be on Janet Yellen’s speech in Jackson Hole at 16:00 CET. Yellenspeaks on the subject of the labour market – the key component to the timing of thefirst rate hike. However, Yellen has spoken extensively on this subject before and it ishard to imagine she can come up with much new given how much time the Fed hasspent on analysing this area. Yellen’s view is clear – that there is still significant slackin the labour market, which is backed up by very moderate wage increases. Accordingto the minutes of the latest Fed meeting, many members expressed that the Fed mightsoon change the description of the underutilisation of labour. If Yellen comments onpolicy at all, she is likely to repeat the phrase from the semi-annual testimony that ifthe labour market continues to improve faster than expected, the risk is that the firstrate hike could come sooner than currently projected.
ECB-president Mario Draghi will speak at 20:30 CET in Jackson Hole aftermarket close in Europe. It is unclear to what degree he will stick to the labour markettheme that at the moment is less decisive for monetary policy in the euro area.
Fitch is expected to confirm its current triple-A rating of Denmark.
Read the full report: FX Daily