Economic week ahead

WHILE the usual batch of economic readings will continue to stir the currency markets, the annual Jackson Hole central bank conference in the US this weekend will take centre stage for investors across the globe.

Reports suggest that the European Central Bank’s president, Mario Draghi, will not use the conference to signal a long-awaited shift in monetary policy as first thought. However, with expectations that the central bank will soon unwind its quantitative easing programme as the eurozone recovery goes from strength to strength, the markets will still be hanging on to his every word. US Federal Reserve chairman Janet Yellen will also be under the spotlight at the conference in Wyoming, with investors hunting for clues over whether the central bank will hike interest rates once more this year.

Her appearance has been given extra significance after the minutes from the latest Fed meeting showed increasing division at the central bank over whether weak inflation should delay a rate hike.