Factors to watch in FX market, week starting August 19th
- Market starting to price in QE tapering at September Fed meeting, with $10/$15 billion reduction from current $85 billion;
- US bond yields at 2 year highs but USD/JPY not reacting bullishly;
- Global stocks fell heavily last week, yet the AUD managed gains across the board;
- Emerging currencies are still being sold on the tapering prospect, with INR reaching record lows against the USD;
- Metals continue to rip higher with Silver over 20% higher in last 8 trading days;
- Jackson Hole symposium is on this week but none of the really big central bank Governors are attending.