Just in case traders haven’t gotten whiplash from all the hawkish-to-dovish-to-hawkish shifts in central bank posturing over the past month, here is the WSJ which reports that for the first time in three years, ECB’s Mario Draghi is scheduled to address the Fed’s Jackson Hole conference in August, “in a speech that is expected to give a further sign of the ECB’s growing confidence in the eurozone economy and its reduced dependence on monetary stimulus.”
While the Fed debates whether to hike rates in December (market odds are now roughly 50%) and announce the winddown of its balance sheet in September, the biggest question facing the global market is the future of the ECB’s 60 billion QE program, currently due to run through December, and when it will start tapering. Technically, according to Deutsche, even more important is the BOJ’s QE but that particular monetization program is likely to continue well into 2018 as the Nikkei reports. As such the marginal flow of liquidity in global markets is in the hands of Mario Draghi.
This post was published at Zero Hedge on Jul 13, 2017.