Tag Archives: ECB

FX Daily

Main event is the ECB meeting. We do not expect rate cuts or QE in connection withthe meeting but all options are expected to be left open.

German bond yields continued to rise yesterday on the back of reports of a cease-fire in Ukraine,

Bonds took a beating and curves bear-steepened yesterday on both sides of the Atlantic yesterday,

Focus will be on the US ISM report. Last month’s report came out very strong,reaching a three-year high level of 57.1.

German bond yields edged a bit lower yesterday, but the moves were limited and trading volumes depressed by the US holiday.

In FX, EUR continued to inch lower to 1.312 ahead of Thursday’s ECB meeting.

German Bund yields ended the day practically unchanged as the Euro area inflation came down to a new cyclical low just as expected.

In the week ahead, trading volumes are likely to remain light on Monday, with U.S. markets closed for the Labor Day holiday.

Markets got spooked by the developments in Ukraine. Recent moves lower in safe haven yields continued and

German 10-year Bund yield just keeps falling. Yesterday the Bund yield made once more new all-time lows,

FX market players maintained a bearish bent towards the euro,

Long yields stayed at rock bottom levels yesterday with German Bund yield pretty stable at 0.94%.