– Fed increases QE
– EU agrees to banking regulatory structure
– SNB likely to keep FX policy unchanged
– US retail sales likely to rise
What to watch for today
EUR: Shaping a new union. EU leaders will meet today and tomorrow to discuss potential changes to the EU’s institutional framework. We expect EU leaders to reach a political agreement at this summit. Given the ECB’s tendency to introduce policy innovations in the aftermath of new commitments by political leaders, we think this will be a positive development for Europe. Today also, euro area finance ministers will discuss the results of the Greek debt buyback. We think the results of the buyback will be positive enough to keep the IMF in the process and allow the release of financial aid.
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