Currency Rallies Test Central Bankers' Powers to Sway Markets
- Prospect of tighter policy offers support, negating jawboning
- Euro, antipodean, Scandinavian currencies highlighted
AMP Sees Draghi as 'Big One' at Jackson Hole
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This week’s gathering of central bankers in Jackson Hole presents policy makers a chance to talk down their currencies after months of gains versus the dollar. They can’t all win.
That’s because traders in foreign exchange -- the world’s biggest financial market -- are gearing up for reduced stimulus in the coming months in some major economies. Against that backdrop, there’s little that officials can do to lean against currency strength, barring intervention or forgoing tighter monetary policy altogether.