FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that the ECB President Draghi will also be present at the Jackson Hole event, and eye the EUR lower 12 months view.
“In contrast to his US counterparts, he comes to the conference following a trail of weak economic releases from core Eurozone nations”.
“This morning, German August PMI data are modestly softer than the previous month’s data, this follows a weak German GDP report for Q2 and ongoing fears about the impact of Russian sanctions on both Germany and the broader Eurozone economy”.
“Although the ECB’s TLTROs are yet to start, there is a strong likelihood that the ECB will again warn about the risk of further policy easing. We expect EUR/USD to trend towards 1.28 on a 12 mth view and would look to sell rallies in EUR/USD.