Taper expectations have been watered down, helping risk trades
Asian equities are faring better towards the tail-end of the session now, and US futures are also keeping higher by ~0.4% ahead of European trading.
It's all about the Jackson Hole focus as the symposium goes virtual, pretty much reaffirming that Powell & co. are unlikely to kick off any major pivot in the tapering narrative - at least for the time being.
.gif)
For now, risk trades are taking comfort in that with the dollar being pushed lower to start the week. In FX, commodity currencies are performing modestly as the loonie leads the charge with USD/CAD down 50 pips to 1.2775.
Gold is also up 0.4% to $1,787 while oil is seeing a mild bounce of nearly 2% to $63.30.
Despite all of this, the pushing back of the taper announcement may seem like a good thing for risk at first but be wary of what that means for the economic outlook.
