THE pound lifted against the euro on Monday ahead of a key speech by European Central Bank (ECB) chief Mario Draghi at Jackson Hole. The pound strengthened slightly against the euro on Monday. Sterling strengthened by around 0.18 per against the euro to 1.095 on Monday morning, and was flat against the US dollar at around 1.287 on Monday morning.Markets are awaiting key speeches by ECB president Mr Draghi, as well as US Federal Reserve chair Janet Yellen at Jackoson Hole later this week.
Craig Erlam, senior market analyst at Oanda, said: “The Jackson Hole Symposium is the obvious event people will be most interested in, with both Federal Reserve Chair Janet Yellen and ECB President Mario Draghi making an appearance. “Both central banks are on the cusp of announcing measures aimed at reducing monetary stimulus in the coming months, the question is whether they will use this platform to prepare the markets for such a move.”Reports last week suggested that Draghi is unlikely to take the opportunity given how the markets have misinterpreted previous remarks, an odd decision given the number of times the central bank has claimed its not interested in this.”Still, we can expect investors to pay very close attention to what he says and respond accordingly. “Yellen may not be so secretive on the other hand, given how open her colleagues have been when discussing plans to start reducing the Fed’s balance sheet, which currently stands at close to $4.5 trillion.”Traders, though, may be more interested in hearing whether the latest inflation data has changed the view within the Fed on raising interest rates again this year, with markets currently unconvinced, to say the least.”
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