Even though everyone is anticipating Jackson Hole this week, the Eurozone’s purchasing managers’ indices for August are out today, so it is still worthwhile to look at the statistics from the region. Prior to these occasions, Commerzbank FX Analyst Antje Praefcke analyses the EUR forecast.
Lagarde is probably going to keep everything unlocked for the time being.
When ECB President Christine Lagarde is scheduled to appear in Jackson Hole on Friday, the market may closely monitor her remarks to determine if she leans more to the dove side, which might put negative pressure on the euro.
However, I would be wary of misinterpretations of her words and would prefer to wait until the August inflation statistics are out on August 31. Furthermore, Lagarde is probably going to leave all options open for the time being at the end of the interest rate cycle and just before the following interest rate meeting in September. In light of this, I would resist the urge to immediately sell the Euro today because to weaker-than-expected indexes.
