Tag Archives: ECB
FX: speak week
Friday’s payrolls does not change USD short term outlook, but need a blessing from Yellen this week. Will ECB attack EUR on Thursday? Less important data, more talk this week.
The Week Ahead in FX
In the week ahead, market participants will be focusing on Thursday’s ECB monetary policy announcement. Rate reviews by BoE and the Reserve Bank of Australia will also be closely watched.
Risk-Reward Attractive For EUR Shorts Ahead Of ECB Meeting
The ECB will be in the spotlight in the coming week. April’s CPI was not weak enough to make a policy move likely this week but not strong enough to rule one out altogether.
FI Eye-Opener: Forget the weak Q1 – the future looks quite different
While much of Europe was on holiday yesterday, US bonds continued to rally and the curve bull-flattened further, as fresh data suggested US GDP might have actually contracted during the first quarter of this year.
FI Eye-Opener: Spring inflation
• Euro inflation rebounds, and pressure on the ECB fades • 90d ECB liquidity operation follows the trend and net injects liquidity
Euro area: Inflation rebounds in April, ECB to stay put
The inflation rate increased to 0.7% (from 0.5%), enough in our view to keep the ECB away from providing more stimulus to the economy at the meeting next week.
ECB Noyer: Managing Euro An ‘Illusion’; Open To Other Measures
European Central Bank Governing Council member Christian Noyer said Wednesday that it was an “illusion” to think that the level of the euro could be managed but said he was open to additional liquidity measures.
FI Eye-Opener: Bumps ahead for bonds
Shorter German bonds rallied yesterday on the back of soft German inflation numbers (see more below), while longer yields ended with rather small changes, as did US yields.
FI Eye-Opener: Eonia continues to surge higher
Bond yields rose yesterday on both sides of the Atlantic, more so in the US than in the Euro zone. Curves saw some steepening pressure. Intra-Euro-zone bond spreads mostly widened.
FI Eye-Opener: Tensions building
Especially German bonds rallied on Friday in a flight-to-quality move, curves bull-flattened, spreads widened and equities took a beating.
EUR: Upside Risk Persists Short-Term
The EUR has been capped of late, mainly on the back of ECB President Draghi reiterating that the ECB is ready to consider more aggressive policy action such as quantitative easing if the inflation outlook deteriorates.
FI Eye-Opener: Spanish economy rising from the ashes
German yields edged modestly higher yesterday, but US yields continued to fall. The US 10-year yield has descended for four days in a row, though the moves have been quite moderate and