Tag Archives: ECB
ECB Draghi Successful So Far In Jawboning Euro lower
European Central Bank President Mario Draghi could certainly pat himself on the back Thursday, given that his comments about the high level of the euro had the desired effect of moving the euro lower.
ECB promises to cut in June
The ECB abstained from easing today but Draghi was very dovish and said “the Governing Council is comfortable with acting in June”. Hence we expect both a deposit and refi rate cut of 10bp in June.
ECB: “We feel comfortable with acting next time”
Soft words, no cuts this time – as expected. But judging from what Draghi said, we feel that the probability for action at the next meeting is now above 50%.
The Global Macro Pulse
In FX, AUD was the big mover in early trading, rallying 0.4% to 0.937 on the back of good employment data and stronger-than-expected China trade. EUR found support around 1.3906 and
FX Daily
We expect today’s ECB meeting to be another wait-and-see one without any neweasing measures. MarioDraghi is expected to continue to sound very dovish as inflation in April again wasbelow ECB’s expectations,
FI Eye-Opener: What would Draghi do?
Long bond yields moved cautiously with all eyes already on the ECB meeting. German 10-year Bund yield ended slightly higher after trying unsuccessfully to break over 1.5 % level.
EUR/USD: Upside Risk Intact If No Aggressive ECB Action On Thurs
The EUR has been in demand of late, mainly on the back of the notion that there is little risk of the ECB considering unconventional policy measures such as cutting the deposit rate negative as soon as this week.
FI Eye-Opener: Irish confidence surges to multi-year highs
German bond yields mostly edged slightly higher yesterday, but the moves were still quite limited. In the US, yields mostly fell somewhat in the evening,
How High Will The Euro Go?
Anyone wanting to know what the ECB will decide on Thursday should carefully read Draghi’s speech1 from 24 April in which the ECB president outlined the problems that the central bank could address.
FI Eye-Opener: Stronger ABS for the summer
Bond yields edged higher yesterday on both sides of the Atlantic, but trading volumes were very subdued due to the UK holiday.
ECB Mersch: No Deflation Risk, But Risk of Too-Protracted Low Inflation
There is no great risk of either deflation or inflation in the euro area, European Central Bank Executive Board member Yves Mersch said Monday.
FI Eye-Opener: Don’t the markets care about payrolls anymore?
Bond yields fell further on both sides of the Atlantic on Friday despite a jump in US payrolls growth (see more below), as worries related to escalating tensions in