What you need to know about next week ??

So let's start with the Jackson Hole speech that Yellen delivered on Friday. She was more optimistic about the labor market and inflation which will reach 2%. But did not say anything about monetary policy and investor took this to dump the dollar and usdjpy sunk to 109.10 but recovered some losses and closed on 109.35 and we still think before breaking up higher there is some short-covering and we will see 109 before 110.

For the Euro market is totally bullish and Draghi does not care about higher currency and the next week we can see 1.2000 before some correction in euro which is up almost 14%.

Sterling is facing Brexit fears and negotiations can be delayed further 2 months and will start in December because Germany holds elections in September but Angela Merkel is widely expected to win. Currency is under pressure and will remain under pressure according to our view.