Macro Mondays | Powell's Jackson Hole Testimony

World of Oil Derivatives

Please note, this episode was recorded on Friday 23rd August at 17.00.
Macro Specialist James Brodie and Trader, Director James Todd delve into Powell's Jackson Hole testimony, the weak manufacturing PMI globally and UK inflation below expectations. They also take a look at inflation within the UK and the soft prices we've been seeing in crude oil over the past week.
James Brodie and James Todd look into the OIS pricing to see what's priced by the central banks in the forthcoming central bank meetings and also look at the week ahead, including; key markets, trends, charts and risks.
Chairman Powell's Jackson Hole testimony that came out on Friday, basically said, he was dovish, however, he made it clear that the Fed would be data dependent. We expected exactly this because the OIS is pricing between 25 and 50 basis points of cuts at the September meeting, giving the Feds a month to watch the data. Although Powell clearly didn't want to have to paint them into a corner 25 or 50 this far in advance. He said. We do not seek or welcome further labour market cooling, so they're clearly, quite concerned about employment.
The key data to look out for this week is;
Tuesday; U.S. consumer confidence, German GDP
Wednesday; FOMC minutes
Thursday; Euro area CPI, US Q2 GDP update, jobless claims
Friday; U.S. Uni Michigan consumer confidence
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