EUR/USD: Jackson Hole meeting poses a bearish risk to the eurodollar (Barclays)

Barclays believes that the EUR/USD may fall on the forex following the speeches by the Fed and the ECB in Jackson Hole.

"All attention will be focused on the Jackson Hole meetings held from 24 to 26 August.

We believe that the risks on the euro are biased downwards, and that buyers of the EUR may be disappointed by the lack of significant news about the normalisation of monetary policy.

Conversely, we see a bullish risk on the dollar, as the Fed could deliver a confident message within this context of low expectations of future rate hikes and short USD positioning. However, recent weak US data and concerns about Trump's ability to implement his policy are negative factors for the USD."