Sunday’s Group Of 30 Summit-Important Weekend For Currencies!
Shain Vernier • 2 min read
A normal weekend is pretty quiet on the financial front. A nice hammock, a few drinks, maybe a nap or two. Not this weekend. The Group of 30 is hosting its annual International Banking Seminar in Washington D.C. The world’s financial heavy hitters will be there, offering up commentary on the global economic situation.
Ill-timed comments can be fatal to our trading accounts. The fact that the markets will be largely closed during the presser brings numerous possibilities into play.
As always, preparation is the key to avoiding disaster. So, we will prepare accordingly.
The Group of 30 Conference will take place Sunday, Oct. 15. It is divided into three sections beginning at 9:00 AM EST:
The Global Economy: Prospects For Broad-Based Growth
Capitalizing Private Finance For Long-Term Investment
Financial Regulation And Economic Policies To Avoid The Next Crisis
Talk Is Cheap, But Bold Words Can Be Costly!
The Guest List
A quick glance at the guest list reveals a who’s who of the financial community. The seminar is by invitation only but is open to members of the media. Any provocative statements will most certainly hit the newswire in short order.
Section one will be the discussion the financial media is focussed upon the most. It features Federal Reserve Chair Janet Yellen, Bank of China Governor Zhou Xiaochuan, Bank of Japan Governor Haruhiko Kuroda, and ECB Vice-President Vitor Constancio.
What to Look For
As always, all eyes will be on Yellen for hints on what may be coming the greenback’s way. However, if you are trading yen, pay attention to BOJ Governor Kuroda. The Japanese special election is seemingly in the bag for Abe, but if the Liberal Democratic Party loses a majority, “Abenomics” is toast. Kuroda’s tone will be very interesting, and capable of swaying the currency markets.
In the final section, Gary Cohn, the favorite to be the next U.S. FED chairman, takes the stage to discuss financial regulation. I look for a somewhat aggressive commentary towards any tightening of U.S. monetary policy and hints of how he will proceed as the new chief.
Bottom Line: Items such as this are tough to trade, mostly because the markets are closed when they occur! We may see select pairs open gap up or down depending upon what transpires on Sunday.
This does not mean that I am opposed to holding positions into the weekend. But, they will have a higher degree of risk and greater potential for reward.