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Resigned to waiting for Friday

| Posted by: Paul Donovan | Tags: Paul Donovan

  • As of Sunday evening UK time, there have been no new resignations from the US administration. Investors will be hoping for a period of stability ahead of a crowded Congressional agenda this autumn. The question is how much Congress might be able to accomplish in the event that the executive branch fails to offer leadership.
  • This week's Jackson Hole summer camp for central bankers is a more pressing concern for investors. The forum allows for more detailed and technical discussions than a central bank speech. ECB President Draghi has indicated a desire not to give a more detailed or technical discussion of euro policy, however.
  • Fed Chair Yellen has more potential to interest markets. With a passive quantitative policy tightening assumed to be imminent, questions about the long-term size of the Fed's balance sheet, technical distortions to consumer prices in a low inflation world, and the lesser issue of short-term interest rates may be addressed.
  • There is little on the data calendar. German Chancellor Merkel has signaled a desire to serve a full term as chancellor if elected. The UK government will reveal more intentions in the EU exit negotiations, but this is only one side of the negotiation.