Markets Wait to Exhale
Global risk appetite is improving, but trading liquidity remains thin ahead of this morning’s speech from Federal Reserve chair Jerome Powell at the Jackson Hole economic symposium. The dollar is retreating, the pound and euro are inching higher, Treasury yields are flat, and equity futures are pointing to gains at the North American open. Odds on a half-point rate cut at the central bank’s September meeting have fallen sharply from the early-August peak, but markets nonetheless expect Powell to deliver a distinctly dovish outlook, setting the stage for at least one outsized move in the autumn months by emphasising downside...