FX Market Ripe for Volatility With Jackson Hole Expectations Low
- Fed’s Yellen, ECB’s Draghi not expected to offer new policy
- Yet crowded wagers, thin liquidity could leave traders exposed
Bianco Says Draghi Speech May Surprise Markets
This article is for subscribers only.
The scuttlebutt around Wall Street is that this year’s economic symposium in Jackson Hole, Wyoming, a who’s who of central bankers and global policy makers, will be a dud as far as financial markets are concerned.
On the off chance it’s not, however, currency traders should expect some chop Friday. European Central Bank President Mario Draghi takes the stage at 3 p.m. New York time, just a few hours after Fed Chair Janet Yellen. Crowded wagers, especially those betting on a stronger euro and weaker dollar, as well as the usual thin liquidity on Friday afternoons in August, means the market may be vulnerable to frenetic, outsized moves, participants say.