DXY is warming up.
AUD was pounded with risk.
CNY is fine.
Gold shaky.
Metals warning.
Mining bear fully intact.
EM rolled.
Junk is fine.
Yields too.
Stocks were hit.
There wasn’t much going on to explain the sudden nerves. I put it down to the approach of Jackson Hole. Societe General.
The title of this year’s Federal Reserve Bank of Kansas City’s Economic Policy Symposium in Jackson Hole, Wyoming, is “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.
Given that the debate at the last FOMC meeting (the Minutes of which will be released tomorrow), was about whether the tightness of the labour market was a result of a dip in labour force participation and modest growth in the labour force overall, or of a slowdown in growth, it seems fair to expect this will be a much-discussed topic this week.
The big question is whether we will be able to glean anything about future FOMC thinking from those deliberations.
That title sounds ot me like Jay Powell is about to tackle the role of immigration in the US economy today.
Not least because the collapse in migrant workers has so successfully held up wages.
And that is presenting the Fed with stiffer-than-expected services inflation, unless we see a productivity gain.
This is shaping as hakish at the margin, as expected.
AUD is down as we approach.
