review

Federal Reserve Bank of Kansas City (latest release)
Frequency     Annually;
Next Release     Aug 24, 2013
FF Notes     The Economic Symposium, held in Jackson Hole, Wyoming, is attended by central bankers, finance ministers, academics, and financial market participants from around the world. The meetings are closed to the press but officials usually talk with reporters throughout the day. Comments and speeches from central bankers and other influential officials can create significant market volatility;

Also Called     Kansas City Fed Economic Symposium;
US
A somewhat busier week for the US, with the major event coming in the form of the Jackson Hole symposium, FOMC minutes and home sales figures. The week begins in earnest on Wednesday, with the existing home sales figure, which is expected to show further improvements for the crucial housing sector. Market expectation is for a rise from 5.08 million to 5.15 million, which would represent a reversal after a reduction last time around. The importance of the existing figure is that this represents the majority of the total home sales data and thus is the leading indicator of housing market strength. On the whole, this release has tended to disappoint with four out of the last five figures coming in below estimates and thus the bias continues to be downward.

Also on Wednesday, the minutes from the last FOMC meeting are released. The talk of tapering within the markets have reached a crescendo over recent weeks, with speculation pointing to a potential reduction in the rate of asset purchases occurring in September. This is by no way guaranteed and thus these minutes are likely to be poured over for any indication of a timescale. Other points to look out for are hints as to the amount and type of purchases which are going to be affected.

Such tapering is expected to be largely effected by the ongoing employment data out of the US. However, given the lack of remaining rate and non-farm payroll figures until the September decision, the weekly unemployment claims figure will play a more prominent role. This week we are expecting a marginal rise from 320k to 322k, which would likely bring little in terms of response. However, be aware than any large movement away from this estimate could bring market volatility.

Finally, the week is rounded off by the annual Jackson Hole symposium, due to be held on Thursday and Friday. This is a meeting where central bankers, finance ministers, academics and alike can hold discussions away from the press. Given the 2010 speech from Ben Bernanke provided strong hints to QE2, markets will be paying close attention to any announcements this year. That being said, the notable lack of high caliber central bankers (no Mario Draghi nor Mark Carney) brings about a more domestic feel. Thus many will be looking out for speeches from the likes of Janet Yellen, whose bid to become Fed chair has been the centre of debate over the recent months.